Lukoil's Waning Grip: The Billionaire's Gambit Amid Political Strife

In the aftermath of Russia's 2014 Crimea invasion, Lukoil's founder, Vagit Alekperov, opted against selling Western assets despite President Putin's urging, believing them to be sanctions-proof. However, Lukoil's international strategy soured post-2022, with US sanctions under Trump forcing asset sales. The company's global stature now faces a decline amid economic sanctions.

In 2014, Vagit Alekperov, the founder of Lukoil, made a decisive move that defied Russian President Vladimir Putin's advice: he kept Lukoil's assets in the West, anticipating they were immune to sanctions. This controversial decision came after Putin had urged Russian businessmen to sell their overseas assets post-Crimea invasion.

Twelve years later, Alekperov's gamble backfired as US sanctions under Donald Trump necessitated a fire sale of Lukoil's international portfolio. The company's $22 billion worth of assets, accumulated over two decades, are now being offloaded due to the sanctions, drastically reducing Lukoil's global presence.

As Lukoil retracts to domestic focuses, Kremlin spokesperson Dmitry Peskov criticized Western property rights violations. This significant shift emphasizes the decline in Russian foreign investment since sanctions have rendered continued international operations untenable, marking a somber chapter in post-Soviet Russian economic history.

(With inputs from agencies.)