Lukoil has accepted an offer from global commodity trader Gunvor to purchase its international assets, following recent sanctions imposed by the U.S. The move marks a significant reaction from a Russian company in light of the Western restrictions resulting from the conflict in Ukraine that began with Russia’s large-scale invasion in 2022. The deal specifically involves Lukoil International GmbH, which oversees Lukoil’s foreign operations.
Lukoil stated that the essential terms of the transaction had been mutually agreed upon, and it has committed not to engage with other potential buyers. Gunvor has confirmed that discussions regarding the acquisition are underway. The transaction is contingent upon approval from the U.S. Treasury’s Office of Foreign Assets Control.
The U.S. Treasury has provided a license allowing companies until November 21 to conclude dealings with Lukoil and Rosneft. Gunvor, which gained prominence in the 2000s as a leading trader of Russian oil, has benefited financially from the surge in oil prices following the outbreak of war in Ukraine. The company, alongside others in the sector, has leveraged substantial profits to expand its asset portfolio globally.
Lukoil is responsible for about 2% of world oil production, with its most significant foreign asset being the West Qurna 2 oil field in Iraq. This asset alone has a production capacity exceeding 480,000 barrels per day. Additionally, Lukoil operates refineries in Bulgaria and Romania and supplies oil to various countries, including Hungary and Turkey. Its investments span multiple regions, including Central Asia, Africa, and Latin America.
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