Russia’s Lukoil to Sell Foreign Assets to US Investment Firm
In a significant development, Russia’s oil giant Lukoil, which has been sanctioned by the US over the Ukraine war, has announced plans to sell its foreign assets to the US investment firm, The Carlyle Group. The assets, which include shares in oil fields and refineries across the globe, are located in countries such as Iraq, Azerbaijan, Egypt, the United Arab Emirates, Nigeria, and Mexico.
The sale is a result of the US sanctions imposed on Lukoil, which have restricted the company’s access to US banks, traders, transporters, and insurers. The sanctions, which were imposed in October 2025, aim to put pressure on Russia’s state finances and have forced Lukoil to seek alternative arrangements for its foreign assets. The company has signed an agreement with Carlyle, although the deal’s value has not been disclosed.
The agreement excludes assets in Kazakhstan and is subject to US Treasury approval. Carlyle has stated that the deal has been structured to be fully compliant with US Treasury policies and is conditional upon due diligence and regulatory approvals. The Kremlin has declined to comment specifically on the deal, but has emphasized the need to ensure and uphold the interests of the Russian company.
The sale of Lukoil’s foreign assets is a significant development in the ongoing saga of US sanctions against Russian companies. The sanctions have had a significant impact on the Russian economy, which has been stuttering due to the financial burden of the nearly four-year assault on Ukraine. Moscow’s oil and gas revenues, which provide roughly a quarter of state budget income, fell to a five-year low in 2025.
The deal is expected to have significant implications for the global energy market, as Lukoil’s foreign assets are substantial. The company’s shares rose 3.5% on the news, according to the Moscow stock exchange. The sale is also seen as a strategic move by Carlyle, which is seeking to expand its presence in the global energy market.
The development highlights the ongoing tensions between Russia and the US, which have been exacerbated by the Ukraine conflict. The US has imposed significant sanctions on Russian companies, including Lukoil, in an effort to pressure Moscow to change its stance on the conflict. The sale of Lukoil’s foreign assets is a significant concession by the company, which is seeking to mitigate the impact of the sanctions on its business.
