Moscow [Russia], October 28 (ANI): Moscow-headquartered Lukoil has announced plans to sell its overseas assets following sanctions imposed on the company, Russian state media reported.
“The company announces its intention to sell its international assets. The consideration of bids from potential purchasers has been started,” Lukoil said in a statement on Monday, according to a report by TASS.
The sale is being conducted under a wind-down license from the US Office of Foreign Assets Control (OFAC). The company said the move was prompted by “the introduction of restrictive measures against the Company and its subsidiaries by some states.”
OFAC has imposed a deadline of November 21 for Lukoil to wind down its international operations or face heavy penalties. “If necessary, the company plans to apply for an extension of the license to ensure uninterrupted operations of its international assets,” Lukoil said.
The decision follows US President Donald Trump’s imposition of sanctions on Lukoil and fellow Russian oil and gas firm Rosneft, citing “Russia’s lack of serious commitment to a peace process to end the war in Ukraine.”
The US Treasury Department said the actions “increase pressure on Russia’s energy sector and degrade the Kremlin’s ability to raise revenue for its war machine and support its weakened economy.”
“The United States will continue to advocate for a peaceful resolution to the war, and a permanent peace depends entirely on Russia’s willingness to negotiate in good faith. Treasury will continue to use its authorities in support of a peace process,” the department said in a statement.
“Now is the time to stop the killing and for an immediate ceasefire,” said US Secretary of the Treasury Scott Bessent. “Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine. Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war. We encourage our allies to join us and adhere to these sanctions,” he added.
Washington has also given companies working with the sanctioned Russian entities one month to sever ties or face secondary sanctions that would cut them off from US banks, traders, shippers, and insurers.
Lukoil operates in exploration, production, refining, marketing, and distribution of oil and gas both in Russia and internationally.
According to the US Treasury Department, several Lukoil subsidiaries have been designated under Executive Order 14024 for operating in the Russian energy sector. These include Lukoil Perm, involved in geological exploration and production; Lukoil Aik A Limited Liability Company and Lukoil West Siberia Limited, engaged in oil and gas production; and Lukoil Kaliningradmorneft, which develops onshore and offshore fields.
Other subsidiaries include the Russian Innovation Fuel and Energy Company, focused on developing and implementing technologies for enhanced oil recovery, and Uraloil, which develops oil and gas fields across Russia. (ANI)
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