Lukoil Takes Steps to Divest Global Assets Following U.S. Sanctions

The Russian oil behemoth Lukoil announced late Monday its plans to divest its international assets following the imposition of U.S. sanctions related to the ongoing conflict in Ukraine.

Last week, U.S. President Donald Trump enacted a significant sanctions package against Russia, targeting Lukoil and Rosneft, two of its major oil companies, expressing dissatisfaction with Moscow’s continued military actions.

«In light of the restrictive measures introduced by various countries against the company and its subsidiaries, we declare our intention to sell our overseas assets,» Lukoil stated in an announcement.

The company also mentioned that the process for bidding has commenced.

Following a series of diplomatic discussions earlier this year and the first direct negotiations between Russia and Ukraine in over three years, efforts to resolve the conflict have stalled, showing little indication of advancement.

Just prior to announcing the sanctions, Trump canceled a planned meeting with Russian President Vladimir Putin, who remarked that the sanctions were «serious,» but deemed them insufficient to severely impact the Russian economy, which is already grappling with multiple international penalties.

These sanctions will effectively freeze all assets of Rosneft and Lukoil within the United States and will bar American companies from engaging in business with these firms.

Together, these companies represent 55% of Russia’s oil production and have been placed on the Specially Designated Nationals (SDN) list of sanctioned entities, a list widely monitored by many nations and viewed as a warning sign in the business community.

Washington has provided companies that interact with these Russian entities a one-month period to sever ties or face secondary sanctions, which would restrict their access to U.S. banking systems, traders, shipping companies, and insurers.