Lukoil to Sell Foreign Assets After New US Sanctions
Russia’s second-largest oil company, Lukoil, announced on October 27 that it will sell its international assets in response to new US sanctions linked to the conflict in Ukraine.
The company said the divestment will proceed under a wind-down licence granted by the US Office of Foreign Assets Control (OFAC).
«The sale of the assets is conducted under OFAC wind down license. If necessary the company plans to apply for extension of the license to ensure uninterrupted operations of its international assets,» Lukoil said in a statement, adding that it has begun reviewing offers from potential buyers.
The decision marks one of the most significant corporate reactions to the latest round of Western sanctions imposed over Russia’s invasion of Ukraine in February 2022.
On October 22, US President Donald Trump announced new Ukraine-related sanctions on Lukoil and state-owned Rosneft. A week earlier, the British government had also sanctioned both companies along with 44 «shadow fleet» tankers, describing the move as part of a broader effort to restrict Moscow’s energy revenues.
About the Company
Headquartered in Moscow, Lukoil produces around 2% of global oil output. The company’s name comes from three western Siberian towns — Langepas, Urai and Kogalym — where it originally operated.
Lukoil has not disclosed which international assets it intends to sell, but its largest foreign holding is a 75% stake in Iraq’s West Qurna 2 oil field, one of the biggest in the world. The field’s production exceeded 480,000 barrels per day in April, according to Russian news agency Interfax.
The firm also owns major downstream facilities, including the 190,000-barrel-per-day Lukoil Neftohim Burgas refinery in Bulgaria, the largest in the Balkans, and the Petrotel refinery in Romania. It supplies crude oil to Hungary, Slovakia, and Turkey’s STAR refinery, which is operated by Azerbaijan’s SOCAR and relies heavily on Russian oil.
Beyond Europe, Lukoil holds stakes in oil terminals, retail fuel chains, and exploration and production projects across Central Asia, Africa, and Latin America.
