Moscow, Russia – Russian oil giant Lukoil has begun selling its foreign assets following new US sanctions. This move is expected to have a direct impact on its investment structure and global revenues.
The company said in a statement issued Monday that it has begun searching for buyers for its projects outside Russia. The company explained that the decision came “as a result of restrictive measures imposed against the company and its branches by some countries.” This prompted it to officially announce its intention to dispose of its foreign assets before the November 21 deadline.
Lukoil is Russia’s second-largest oil producer, accounting for approximately 2% of global production. This makes the impact of sanctions on it significant in the international energy market.
Politico quoted a former company official, who requested anonymity, as saying that the forced liquidation could cause the company’s revenue to drop by up to 30%.
The sale is expected to include three oil refineries and about half of the company’s global network of approximately 5,000 gas stations. The same official considered these developments a “severe blow,” saying, “Lukoil is finished.”
This move comes as part of increasing US pressure on Moscow, aimed at increasing the economic cost of the war in Ukraine and attempting to push the Kremlin to change the course of its military operations there.
