Lukoil plans to sell foreign assets due to Western sanctions
Russian oil company Lukoil has announced that it intends to sell their foreign assets in response to new western sanctions imposed on Russia.
In a statement, the company said that the sale will be carried out under the licence of the US OFAC with possible extensions to ensure the continuity of the assets.
Sanctions that prompted the decision
On 22 October 2025, President Donald Trump imposed sanctions against Lukoil and another Russian oil company, Rosneft.
On 15 October, the UK also imposed sanctions on Russian energy assets and 44 shadow fleet tankers.
As a result, the company, which controls about 2% of global oil production, has come under intense pressure.
Assets available for sale
The company did not specify the exact list of assets, but the key facilities were mentioned:
75-% stake in the West Qurna 2 oil field in Iraq, one of the world's largest with production of over 480,000 barrels per day.
Lukoil Neftekhim Burgas refinery in Bulgaria (190,000 bpd).
Stakes in refineries in Romania, participation in fuel networks in Ukraine, Kazakhstan, Africa and South America.
Implications for the Russian economy
The sale of foreign assets is a radical step that demonstrates systemic pressure of sanctions on Russian energy.
Analysts believe:
“The sale will be the most confidential action of a Russian company because of the sanctions - it has never come to this.”.
By doing so, the Kremlin risks losing some of its foreign currency revenues, which could increase financial pressure on the budget.
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