Lukoil to Divest Global Assets Amid Western Sanctions

Lukoil, Russia's second-largest oil producer, plans to sell its international assets due to sanctions over the Ukraine conflict, announced by the U.S. and U.K. This move represents a significant reaction from a Russian firm. The company owns significant stakes in oil fields and refineries worldwide.

Lukoil, Russia's second-largest oil producer, announced on Monday its intention to sell international assets following recent sanctions. These sanctions, imposed by the United States and United Kingdom over the Ukraine crisis, mark a critical juncture for Russian corporations abroad.

The asset sale is governed by an OFAC wind-down license with potential extensions. Lukoil has started evaluating bids from potential buyers. Significant sanctions targeting Russian oil giants, including Lukoil and Rosneft, were reinforced last week when President Donald Trump and Britain targeted oil fleets and assets.

Lukoil, accounting for around 2% of global oil output, did not specify which assets would be sold. However, its holdings include Iraq's vast West Qurna 2 oil field and the Balkans' largest refinery, Lukoil Neftohim Burgas in Bulgaria. The company also has significant operations in Europe, Central Asia, and beyond.

(With inputs from agencies.)