Russian energy firm to sell foreign assets after new US, UK sanctions

ISTANBUL

Russian energy company Lukoil announced plans to sell its foreign assets following the latest sanctions imposed by the US and the UK, the firm said in a statement on Monday.

“PJSC Lukoil announces that, due to the introduction of restrictive measures by a number of countries against the company and its subsidiaries, the company is announcing its intention to sell its international assets,” the statement read, adding that the review of bids from potential buyers has begun.

The company said the asset sale is being carried out under a wind-down license issued by the Department of the Treasury's Office of Foreign Assets Control (OFAC), which allows for limited transactions for a set period of time.

It also indicated that it may seek an extension of the license “to ensure the continued operation of its international assets.”

Washington recently imposed blocking sanctions on Lukoil and Rosneft, along with 34 of their subsidiaries, as part of President Donald Trump’s new measures targeting Russia’s energy sector.

The UK government also placed Lukoil on its sanctions list in mid-October.

Lukoil’s market value dropped sharply last week, erasing nearly $3.7 billion after the sanctions announcement. Analysts warned the restrictions could further weaken Russia’s energy exports and increase pressure on logistics and pricing.