International Lukoil Business Paralyzed by Sanctions: Impact on the Global Oil Industry
Recent weeks have brought significant news about the severe complications faced by the Russian oil giant Lukoil due to sanctions imposed by the United States and the United Kingdom.
These restrictions have caused widespread disruption of business operations across various countries, affecting key divisions of the corporation.
In Switzerland, Litasco, the Geneva-based subsidiary of Lukoil, has encountered serious operational issues related to trade and logistics.
British shipbrokers are refusing to work with this branch, creating additional obstacles, especially in ship chartering and oil transshipment to Iraq.
This has led to delays and inconveniences in the global oil sector.
Consequently, interest in Lukoil’s assets is rising: according to WSJ, a Swiss company, established in partnership with a close associate of Putin, is currently acquiring the company’s foreign assets.
Meanwhile, due to the operational paralysis, many employees across various divisions have already faced mass layoffs.
In Finland, over a thousand employees of the Teboil gas station network fear potential job losses if the business is sold.
Equally alarming was the incident in Russia — on November 4, a series of explosions occurred in Kstovo, Nizhny Novgorod region, at the Lukoil-Nizhnevolzhsneft Complex, causing a fire and raising concerns about the safety and stability of the energy infrastructure in the country.