Sanctions are working: Lukoil starts selling assets abroad
28 October 04:29
The Russian oil corporation Lukoil has announced the start of the process of selling its foreign assets following the introduction of new sanctions by the United States. The decision was made public by the company’s press service, "Komersant Ukrainian" reports
According to the official statement, Lukoil is starting to consider offers from potential buyers of international assets.
“In connection with the introduction of restrictive measures against the company and its subsidiaries by some states, the company announces its intention to sell its international assets. We have started reviewing offers from potential buyers,” the statement said.
Sale under the supervision of the US regulator
The company said that the sale of assets will be carried out under a license issued by the US Treasury Department’s Office of Foreign Assets Control (OFAC).
Lukoil emphasized that if necessary, it will apply for an extension of the license to avoid stopping the operation of international enterprises until the transactions are finalized.
Why Lukoil is selling assets
This decision was a direct consequence of the sanctions imposed by the United States on October 22 against Russia’s largest oil and gas companies, including Rosneft and Lukoil.
The new restrictions completely prohibit any transactions with these corporations and their subsidiaries, making it impossible to conduct international business and access financial markets.
What we know about Lukoil
Lukoil is one of the largest oil and gas companies in Russia, engaged in a full production cycle: from oil and gas exploration and production to refining, marketing and export.
A significant portion of the company’s revenues came from operations abroad, particularly in Europe, Asia and the Middle East.
What will happen next
Experts say that the forced sale of assets could be the largest withdrawal of Russian businesses from international markets in recent years. This is not only a blow to Lukoil’s position, but also a signal to other companies that have been sanctioned.
As a reminder, the US sanctions against Russia cover a wide range of the energy sector, prohibiting any transactions with sanctioned companies, their assets and subsidiaries worldwide.
