Lukoil in Talks with Buyers for Foreign Assets

Moscow, November 14, 2025 – Russia’s second-largest oil producer, Lukoil (LKOH.MM), confirmed it is in negotiations with potential buyers for its foreign assets after recent sanctions imposed by the U.S. and UK. These discussions follow the collapse of a planned deal with Swiss commodities trader Gunvor, which ended due to U.S. Treasury opposition.

Lukoil stated that specific deals will be announced once final agreements and regulatory approvals are secured, emphasizing the company’s goal of maintaining uninterrupted operations of its international assets during any transition. This approach aims to prevent disruptions to energy supplies in the countries where Lukoil operates while safeguarding jobs.

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Context: Sanctions on Lukoil and Rosneft

Last month, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) announced new sanctions targeting Russia’s largest oil producers, Lukoil and Rosneft (ROSN.MM). These measures are intended to increase pressure on Moscow regarding its military actions in Ukraine.

OFAC also issued a general license, giving companies until November 21, 2025, to complete ongoing business transactions with Lukoil, including acquisitions of its international holdings. The prior sale agreement to Gunvor was terminated after Washington expressed opposition to the transaction.

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Implications for Global Energy Markets

Lukoil’s international assets span several countries and are vital for regional energy security. Analysts note that ensuring smooth sales without operational interruptions is critical to avoid disruptions in oil and gas supply chains, particularly in Europe and Central Asia.

With potential buyers including private equity firms and international energy companies, the final transactions could significantly reshape ownership of Russian oil assets abroad while adhering to Western sanctions.

The evolving situation highlights the complexity of navigating sanctions, regulatory approvals, and geopolitical considerations in global energy markets.