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Russian oil producer Lukoil has reached a preliminary agreement to sell its foreign subsidiary to U.S.-based investment firm the Carlyle Group, as the company moves to comply with mounting U.S. sanctions tied to the Ukraine war.
In a statement, Lukoil confirmed that Carlyle’s acquisition offer had been accepted, though the transaction remains subject to approval by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) and other undisclosed conditions.
The sale includes Lukoil’s international assets in Iraq, Azerbaijan, Egypt, the UAE, Nigeria, and Mexico, but excludes its holdings in Kazakhstan, as negotiations over operations in the Central Asian country are still ongoing.
The value of the deal was not disclosed. Following the announcement, Lukoil shares climbed as much as 3.5% on the Moscow Stock Exchange.
The decision to divest comes after the U.S. imposed sanctions on Lukoil and its affiliates in October 2025, after President Donald Trump accused Russia of showing "a lack of serious commitment" to the Ukraine peace process.
These sanctions effectively froze all Lukoil assets under U.S. jurisdiction and barred U.S. citizens and entities from engaging in any transactions involving the company.
Moreover, any firm in which a sanctioned entity owns a stake of more than 50% also falls under the sanctions regime.
After sanctions were imposed, Lukoil’s sale agreement with Switzerland-based trader Gunvor Group was blocked by the U.S. Treasury, citing the group's alleged ties to the Russian government.
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