Lukoil to sell international assets to Carlyle amid sanctions pressure
Carlyle Group has agreed to buy most of Lukoil's $22 billion worth of foreign assets.
Russian oil producer Lukoil has signed a conditional agreement to sell its foreign subsidiary, LUKOIL International, to US investment firm Carlyle Group, the company announced. The deal follows months of sanctions‑driven disruption that has pushed the company to divest overseas holdings.
The proposed sale excludes Lukoil’s assets in Kazakhstan, which will remain under the firm’s control and continue operating under existing licences. Any transaction will hinge on multiple regulatory approvals, including from the US Treasury’s Office of Foreign Assets Control (OFAC). Lukoil said it is negotiating simultaneously with other potential buyers.
The sales process has been turbulent. An earlier agreement with commodities trader Gunvor was blocked by the US Treasury, which described the firm as a “Kremlin’s puppet,” leading Gunvor to withdraw its offer. Analysts estimate Lukoil’s international portfolio, including refineries, oil fields and retail operations across Europe, the Middle East, Africa and the Americas, could be worth between $10 billion and $22 billion.
Carlyle, which manages $474 billion in assets, would acquire a sprawling upstream and downstream footprint across more than 30 countries should the deal be approved, though no purchase price has been disclosed.
U.S. authorities have extended the deadline for negotiations to 28 February, as Lukoil seeks to navigate sanctions while maintaining operational continuity in permitted regions. The company noted that discussions continue with governments, including Kazakhstan, which has applied for OFAC approval to explore purchasing Lukoil’s Kazakh interests.
