Lukoil's $22 Billion Global Asset Sale: A Sanctions-Driven Shift

Lukoil agrees to sell most of its foreign assets valued at $22 billion to the Carlyle Group, pending U.S. government approval. The transaction is a response to U.S. sanctions imposed due to Russia's actions in Ukraine. The deal affects operations across Europe, the Middle East, Africa, and Mexico.

Lukoil, Russia's second-largest oil producer, has reached a deal to sell the majority of its international assets, valued at approximately $22 billion, to American private equity firm Carlyle Group. This sale, set for approval by the U.S. government, comes amid heavy sanctions placed on Lukoil due to ongoing tensions in Ukraine.

The agreement, once finalized, will bring an end to Lukoil's foreign expansion. The assets, managed under its subsidiary LUKOIL International GmbH, span a vast global footprint with significant operations in regions including Europe, the Middle East, and Central Asia.

The transaction remains subject to regulatory clearance, particularly from the U.S. Treasury's Office of Foreign Assets Control, highlighting the impact of international sanctions on Russia's energy sector and the broader geopolitical landscape.

(With inputs from agencies.)