Russian oil major plans to divest its foreign assets due to sanctions
(MENAFN) Russian oil giant Lukoil has announced plans to sell off its overseas assets following the recent wave of Western sanctions targeting the company and its subsidiaries. The move comes after both Lukoil and Rosneft were sanctioned by the US last week, following similar measures by the UK, triggering a rise in global oil prices.
Under a US Treasury-issued license, Lukoil and Rosneft are permitted to complete ongoing operations until November 21. Lukoil, Russia’s second-largest oil producer, accounts for roughly 2% of global output. Established in 1991 under a Soviet decree and led by co-owner and former deputy oil and gas minister Vagit Alekperov, the company employs over 100,000 people worldwide. Its operations span the Balkans, Middle East, Africa, Central Asia, parts of the EU, and the US. By the end of 2024, Lukoil ran 2,500 fuel stations across 20 countries, exporting 730,000 barrels of crude and 300,000 barrels of petroleum products per day, reporting a net profit of $10 billion for the year.
In a press release on Monday, Lukoil confirmed it had begun entertaining offers from potential buyers. The divestment is being conducted under the wind-down license, which the company may seek to extend if necessary “to ensure uninterrupted operations of its international assets.”
The sanctions were justified by the US as a response to Moscow’s perceived lack of commitment to the Ukraine peace process, while Russia maintains it is pursuing a lasting resolution to the conflict. Kiev and its Western allies have repeatedly demanded an immediate ceasefire, which Moscow rejects, arguing it would allow Ukraine to regroup and receive additional military support.
Russian officials have consistently condemned Western sanctions as unlawful and counterproductive. President Vladimir Putin described the US move as “unfriendly” but downplayed its economic impact. Visiting the US this week, Putin aide Kirill Dmitriev remarked that “the language of pressure does not work with Russia” and insisted that only constructive dialogue can “bear fruit.”
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