Russian oil company Lukoil to sell global assets in response to Trump sanctions

Russian oil major Lukoil said on Tuesday it will sell its international assets in response to sweeping US sanctions imposed by President Donald Trump that aim to pressure Moscow into agreeing to a ceasefire in Ukraine.

The company said it has begun talks with potential buyers and intends to complete the sales within a sanctions grace period that allows transactions with Lukoil until 21 November. “The company will seek an extension if necessary to complete the transactions,” Lukoil said in a statement.

The Russian oil producer currently holds stakes in oil and gas projects across 11 countries, along with refineries in Bulgaria and Romania and a 45 per cent stake in a refinery in the Netherlands.

The move comes after President Trump announced a new round of sanctions on 22 October targeting Lukoil and Rosneft, Russia’s two largest oil companies, which together account for roughly half of the country’s oil exports.

The US Treasury described the sanctions as a direct attempt to curb Moscow’s wartime revenues. “We call on Russia to immediately agree to a ceasefire in Ukraine,” treasury secretary Scott Bessent said in a statement accompanying the measures.

The sanctions effectively cut off the companies from Western markets, prohibiting US firms from conducting business with them and threatening secondary sanctions on any foreign banks that process their transactions.

Such penalties could restrict their access to the US-dominated global financial system, intensifying the financial isolation of Russia’s energy sector.

Analysts said the measures could trigger a chain reaction across global oil markets, as Lukoil seeks to offload foreign operations and Rosneft faces operational disruptions. The restrictions also complicate European energy ties, given both firms’ legacy assets in EU countries.

Rosneft’s stake in a refinery in Schwedt, Germany, remains under German government custody, with Berlin having assumed control of the asset last year to secure energy supplies.

The refinery no longer transfers revenues to the Russian parent company, further constraining Rosneft’s overseas income.

Oil and gas exports have long formed the financial backbone of Russia’s federal budget, contributing nearly 40 per cent of government revenues before the Ukraine war.

Western sanctions since 2022 have steadily eroded those earnings, forcing Russian producers to turn to Asian markets and offer steep discounts.

With Trump’s latest measures now threatening to sever remaining Western channels, Lukoil’s withdrawal from international holdings marks another escalation in the economic decoupling between Russia and the West.

With PTI inputs