Lukoil to Divest International Assets Following US and UK Sanctions

Economy

Lukoil to Divest International Assets Following US and UK Sanctions

1 month ago

News sources:

REUTERS

INDIATIMES

THEHILL

Lukoil to Divest International Assets Following US and UK Sanctions

Credited from: THEHILL

Lukoil plans to sell international assets due to recent US and UK sanctions.
The asset sales are initiated under a wind-down license from the US Treasury.
Both Lukoil and Rosneft were targeted by sanctions aimed at Russia's oil sector.

Russian company Lukoil has announced its decision to divest its international assets following recent sanctions imposed by the United States and the United Kingdom. This marks a significant move amid the escalating restrictions due to Russia's actions in Ukraine, with Lukoil stating, "the consideration of bids from potential purchasers has started," according to Reuters and Anadolu Agency.

The sales are being executed under an Office of Foreign Assets Control (OFAC) wind-down license, allowing limited transactions for a specified duration. Lukoil may seek an extension of this license to maintain operational continuity of its global assets, as indicated in its statements following the sanctions, according to India Times and The Hill.

Last week, President Donald Trump imposed sanctions on Lukoil and its subsidiary Rosneft as part of efforts to pressure Russia to cease its military operations in Ukraine. The sanctions restrict US-based assets and prohibit American firms from any dealings with these companies, a move that could intensely disrupt Russia's energy exports, according to India Times and Reuters.