Lukoil in Challenging Times: Selling Offshore Assets in Response to New US Sanctions
Russian oil giant Lukoil has announced its intention to rapidly divest its international assets following the recent sanctions imposed by the United States and the United Kingdom.
The decision emerged amidst a series of measures introduced in October 2023 aimed at curbing the company’s operations abroad, particularly in the US.
According to company representatives, the sale of assets will be conducted under a license granted by the U.S.
Department of the Treasury’s Office of Foreign Assets Control (OFAC), providing a legal basis for such transactions.
Lukoil confirmed that it is currently receiving offers from potential buyers and is conducting an assessment, although specific details regarding the assets and pricing are not disclosed.
Moreover, if the license’s validity period expires, the company plans to apply for an extension to ensure continuous operation abroad.
This strategy is driven by the mounting pressure from US sanctions policies, which expanded in late October, further tightening restrictions.
Following these sanctions, within just two days, the market value of Lukoil and its sister company Rosneft dropped by over five billion dollars, severely impacting their market capitalization and investor confidence.
Analysts warn that these measures will significantly complicate the companies’ business activities, as banks and trading partners fear secondary sanctions, potentially halting trading operations in Dubai and affecting crude oil supplies to India.
Consequently, these developments are expected to deepen the financial difficulties faced by Russia’s leading oil corporations, adding to the already substantial profit declines recorded in the first half of 2025.