Newsletters
Lukoil, one of Russia's largest state-run oil companies, is negotiating the sale of its international assets with several potential buyers after the U.S. Treasury Department denied a necessary license for a deal with Swiss firm Gunvor.
According to Lukoil's official statement, the company is in discussions with multiple prospective buyers regarding the potential divestiture, aiming to ensure that operations remain uninterrupted during the process and mitigate any risks of disruptions to energy supplies.
Lukoil has emphasized that it intends to continue its energy supply commitments to various countries while completing the asset sales.
The company also confirmed that the sale would proceed once final agreements are reached and the necessary legal approvals are obtained. Although the details of these transactions are yet to be disclosed, Lukoil’s management indicated that this process is critical for minimizing operational disruptions and ensuring a smooth transition.
To allow for further negotiations, the U.S. Treasury extended the deadline for finalizing the sale of Lukoil’s foreign businesses to Dec. 13. This extension provides additional time for the company to conclude talks with prospective buyers and finalize the required transactions.
Lukoil’s move to divest its international holdings comes amid growing scrutiny of Russian businesses by Western governments, particularly after a U.S. Treasury sanction in late October that targeted the company in response to its involvement in the ongoing conflict in Ukraine. The sanctions have intensified pressure on both Lukoil and Rosneft, with Lukoil now seeking to offload its global assets to comply with new regulatory restrictions and mitigate the impact on its operations.
In addition to the U.S. sanctions, the European Union has also imposed restrictions on Lukoil's operations, particularly targeting its trading arm, Litasco Middle East DMCC, based in Dubai. The company’s leadership is now focused on finding buyers who are willing to proceed with the acquisitions under the newly imposed regulatory framework.
Lukoil has maintained its regional distribution network in Türkiye since 2009. Lukoil Lubricants operates through 23 regional distributors and over 100 sales representatives across the country, managing the sales and marketing of its products.
Most recently, Reuters reported that U.S. private equity firm Carlyle is in initial discussions to acquire Lukoil's international assets and is seeking a U.S. license to proceed, though it could still withdraw, with Lukoil already informed of its interest.
1 min read
3 min read
