Russian oil company Lukoil has announced plans to sell its international assets following sanctions imposed by Western governments.
The decision comes after US Secretary of State Scott Bessent announced sanctions last week against Lukoil and Rosneft, two companies that account for 55% of Russia’s oil production. The sanctions are part of efforts to pressure Russia to end the war in Ukraine.
Earlier this month, both companies were blacklisted by the UK.
In a statement on its website, Lukoil said restrictive measures against the company and its subsidiaries have forced it to plan the sale of its foreign assets. The company has begun reviewing bids from potential buyers. The US Office of Foreign Assets Control (OFAC) has authorised Lukoil to wind up its operations abroad until 21 November.
The US sanctions freeze all assets of Lukoil, Rosneft, and affiliated subsidiaries in the US. They also ban US companies from conducting business with these entities.
Both companies are now included on OFAC’s Specially Designated Nationals (SDN) list, used by numerous countries, and US firms have been given two months to sever ties with the Russian oil giants.
According to Bloomberg, Lukoil is the most internationally diversified of Russia’s oil companies. It operates upstream exploration and extraction projects in former Soviet states such as Kazakhstan, Uzbekistan, and Azerbaijan.
Lukoil, which is also active in Iraq, Cameroon, Nigeria, and Ghana, has 5,300 petrol stations across 19 countries, and refineries in Europe.
A former Lukoil executive, speaking anonymously to Politico, predicted a sharp decline in revenue and profit, estimating a drop of “around 30%.” He added grimly: “Lukoil is doomed.”
