After US sanctions, Russia’s oil major Lukoil to sell overseas assets

MOSCOW(Russia):Moscow-headquartered Lukoil has said that it is going to start selling its overseas assets due to sanctions imposed on the company, the Russian oil major was cited as saying by Russian state media.

“The company announces its intention to sell its international assets. The consideration of bids from potential purchasers has been started,” Lukoil informed in a statement on Monday as per a report in TASS.

The sale of the assets is conducted under the winddown license from the US OFAC (Office of Foreign Assets Control).

The measure, Lukoil said, was taken owing to “introduction of restrictive measures against the Company and its subsidiaries by some states.”

The U.S. Office of Foreign Assets Control has imposed a deadline of Nov. 21 for the company to wind down its businesses abroad or face hefty penalties.

“If necessary the company plans to apply for extension of the license to ensure uninterrupted operations of its international assets,” Lukoil said.

The move comes days after the US President Donald Trump imposed sanctions on Lukoil, along with oil and gas firm Rosneft, stating that it was “a result of Russia’s lack of serious commitment to a peace process to end the war in Ukraine.”

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 US Treasury Department said in a statement.

“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 US Treasury’s statement read.

“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 in and adhere to these sanctions,” he added.

The US Office of Foreign Assets Control has imposed a deadline of Nov. 21 for the company to wind down its businesses abroad or face hefty penalties. Washington also gave firms that work with the Russian entities one month to cut ties or face secondary sanctions, which would deny them access to US banks, traders, shippers, and insurers.

Lukoil engages in the exploration, production, refining, marketing, and distribution of oil and gas in Russia and internationally.
Russia-based Lukoil subsidiaries are being designated pursuant to E.O. 14024 for operating or having operated in the energy sector of the Russian Federation economy, the US Treasury Department said.

The subsidiaries include Limited Liability Company Lukoil Perm is involved in geological exploration and oil and gas production in Russia.

Lukoil Aik A Limited Liability Company, Lukoil West Siberia Limited, is involved in oil and gas production in Russia. Lukoil Kaliningradmorneft is developing onshore and offshore oil and gas fields in Russia and is involved in oil and gas production in Russia.

Lukoil subsidiary Russian Innovation Fuel and Energy Company is involved in the development, production, testing, and implementation of new technologies, techniques, and equipment for the development of hard-to-recover hydrocarbon reserves and enhanced oil recovery in Russia.

Lukoil subsidiary Uraloil is developing oil and gas fields in Russia, according to the US Treasury Department statement. (ANI)