Russian oil giant Lukoil sells international assets after US sanctions
Moscow-headquartered Lukoil has announced its intention to begin selling its overseas assets in response to sanctions imposed on the company, as per reports. “The company announces its intention to sell its international assets. The consideration of bids from potential purchasers has been started,” Lukoil informed in a statement on Monday. The sale of the assets is carried out under the winddown license issued by the US OFAC. Lukoil stated that the measure was implemented due to “introduction of restrictive measures against the Company and its subsidiaries by some states.” The US Office of Foreign Assets Control has set a deadline of November 21 for the company to cease its operations overseas or risk facing substantial penalties. “If necessary, the company plans to apply for an extension of the license to ensure uninterrupted operations of its international assets,” Lukoil stated.
The decision follows shortly after US President Donald Trump enacted sanctions on Lukoil and the oil and gas company Rosneft, asserting that it was “a result of Russia’s lack of serious commitment to a peace process to end the war in Ukraine.” The US Treasury Department stated, “increase pressure on Russia’s energy sector and degrade the Kremlin’s ability to raise revenue for its war machine and support its weakened economy. The United States will continue to advocate for a peaceful resolution to the war, and a permanent peace depends entirely on Russia’s willingness to negotiate in good faith. Treasury will continue to use its authorities in support of a peace process,” the US Treasury’s statement read. “Now is the time to stop the killing and for an immediate ceasefire,” stated US Secretary of the Treasury Scott Bessent.
“In light of President Putin’s steadfast refusal to conclude this senseless war, the Treasury is imposing sanctions on Russia’s two largest oil companies that finance the Kremlin’s war efforts.” Treasury stands ready to take additional measures if needed to bolster President Trump’s initiative to conclude yet another conflict. “We encourage our allies to join us in and adhere to these sanctions,” he added. The US Office of Foreign Assets Control has set a deadline of November 21 for the company to cease its international operations or risk facing significant penalties. Washington has also mandated that firms collaborating with Russian entities must sever ties within one month or risk facing secondary sanctions, which would restrict their access to US banks, traders, shippers, and insurers. Lukoil is involved in the exploration, production, refining, marketing, and distribution of oil and gas both in Russia and on an international scale.
The US Treasury Department announced that subsidiaries of Russia-based Lukoil are being designated under EO 14024 for their operations in the energy sector of the Russian Federation economy. The subsidiaries encompass Limited Liability Company Lukoil Perm, which engages in geological exploration and the production of oil and gas within Russia. Lukoil Aik A Limited Liability Company, known as Lukoil West Siberia Limited, engages in oil and gas production activities in Russia. Lukoil Kaliningradmorneft is engaged in the development of onshore and offshore oil and gas fields in Russia, actively participating in the country’s oil and gas production efforts. Lukoil subsidiary Russian Innovation Fuel and Energy Company is engaged in the development, production, testing, and implementation of new technologies, techniques, and equipment aimed at the extraction of hard-to-recover hydrocarbon reserves and enhanced oil recovery in Russia. Lukoil subsidiary Uraloil is engaged in the development of oil and gas fields in Russia, as stated by the US Treasury Department.
