Lukoil, Russia's second-largest oil producer, has agreed to sell most of its foreign assets, valued at approximately $22 billion, to U.S. private equity firm Carlyle Group. This deal is subject to U.S. regulatory approval, as part of ongoing sanctions related to the Ukraine conflict.
Lukoil Sells Foreign Assets to Carlyle Amid U.S. Sanctions
Russia's second-largest oil producer, Lukoil, has entered into an agreement to sell most of its foreign assets, estimated at around $22 billion, to the U.S. private equity firm Carlyle Group. The sale of Lukoil's international operations awaits U.S. governmental approval, including clearance from the Department of the Treasury's Office of Foreign Assets Control.
This move comes after both Lukoil and Russia's leading oil producer, Rosneft, faced U.S. sanctions last October. The restrictions were imposed in an effort to push Russia towards a peace settlement over the ongoing conflict in Ukraine, Europe's deadliest conflict since World War Two.
Previously, the U.S. Treasury blocked two dealings involving Lukoil, one with Swiss trading group Gunvor, and another proposed share swap by Xtellus Partners, linked to the Russian bank VTB's U.S. arm. The U.S. set a February 28 deadline for Lukoil to divest its global assets.
