Carlyle Eyes Lukoil Assets Amid Sanctions Standoff

Carlyle Group is considering acquiring Lukoil's international assets as U.S. sanctions target the Russian oil giant. Lukoil, faced with a November 21 sanctions deadline, seeks buyers for assets worth $22 billion. Carlyle hopes to secure a U.S. license for purchase, but challenges remain with nationalization efforts.

In a strategic move amid international tensions, U.S. private equity firm Carlyle is weighing the purchase of foreign assets from Russian oil major Lukoil, according to three informed sources. With sanctions looming large, the acquisition comes under the shadow of geopolitical pressures and nationalization threats.

Lukoil currently extracts 2% of global oil output, with its international assets alone contributing 0.5%. Before the U.S. sanctions deadline on November 21, Lukoil must offload these holdings, estimated at $22 billion. Carlyle intends to apply for a U.S. license, assessing the assets' value amidst evolving global dynamics.

While Swiss giant Gunvor withdrew its interest, Carlyle holds a stronger position for U.S. approval, highlighted industry experts. As negotiations unfold, the challenge will be navigating the complexities of nationalization and achieving a fair bargain for the enduringly impactful Russian enterprise.

(With inputs from agencies.)