Lukoil has begun divesting after being sanctioned by the US
Russian oil giant Lukoil has announced that it will sell its foreign assets to global energy trader Gunvor Group after being placed under Western sanctions.
Last week, Lukoil and another major Russian oil producer, Rosneft, were slapped with restrictions by US President Donald Trump, who said it was due to lack of commitment to the Ukraine peace process on the part of Moscow.
Washington’s curbs followed similar sanctions imposed on the two firms by the UK. Russia maintains that it is eager to negotiate, but insists on a comprehensive solution addressing the root causes of the conflict.
Lukoil said on Thursday that it had received and accepted a proposal by Gunvor Group to purchase its subsidiary Lukoil International GmbH, which owns all of the company’s international assets.
“The key terms of the transaction have been earlier agreed by the parties,” the statement read.
The value of the deal, which still needs clearance from the US government, has not been announced.
Lukoil explained that it was getting rid of its foreign assets “due to restrictive measures of some states introduced against the company and its subsidiaries.”
Under a US Treasury license, the two Russian companies have until November 21 to complete ongoing operations. But Lukoil and Gunvor could apply for an extension in order “to ensure uninterrupted operations of international assets and their banking servicing for the period until the completion of the transaction,” according to the statement.
Privately-owned Lukoil is Russia’s second-largest oil producer, accounting for around 2% of global output. The company employs more than 100,000 people worldwide, with projects in the Balkans, the Middle East, Africa, Central Asia, several EU countries and the US.
By the end of 2024, Lukoil maintained a retail network of some 2,500 fuel stations in 20 countries, exporting 730,000 barrels of crude per day and around 300,000 bpd of petroleum products. It reported a 2024 net profit of $10 billion last year.
Swiss-based Gunvor Group is one of the top oil traders in the world, along with Vitol, Glencore, and Trafigura. The firm’s equity stood at $6.5 billion at the end of 2024. Gunvor Group was co-founded by Russian businessman Gennady Timchenko in 2000, but he sold his share in the company in 2014.
