Moscow-headquartered Lukoil has announced plans to sell its overseas assets following sanctions imposed by the United States and allied nations.

The Russian oil giant confirmed through a statement carried by state media agency TASS that it has initiated the process of considering bids from potential purchasers. The company said the decision was being implemented under a wind-down licence issued by the US Office of Foreign Assets Control (OFAC).

Lukoil stated that the move came in response to restrictive measures introduced by several countries against the firm and its subsidiaries. The OFAC has set a deadline of 21 November for the company to conclude its wind-down of international businesses or face severe penalties. The company noted it might apply for an extension to ensure uninterrupted operations during the sale process.

The sanctions were announced days after the US President Donald Trump introduced measures targeting Lukoil and state-owned oil major Rosneft. The White House said that the sanctions were imposed due to Russia’s continued reluctance to engage in meaningful peace negotiations to end the conflict in Ukraine.

According to the US Treasury Department, the sanctions aim to intensify economic pressure on Russia’s energy sector and degrade its ability to generate funds for its war efforts.

Treasury Secretary Scott Bessent emphasised Washington’s stance that the time had come for an immediate ceasefire, stressing that the Kremlin’s refusal to end hostilities left the US with no option but to act.

He added that the Treasury stood ready to impose additional measures if necessary, in alignment with President Trump’s objective of securing peace. The United States also urged its partners and allies to join the sanctions framework to ensure broad compliance and enforcement.

Under the new directive, firms working with Russian energy entities have been given one month to sever ties or risk secondary sanctions that would deny them access to American financial systems, shipping networks, and insurance markets. This represents one of Washington’s strongest steps yet to isolate Russia’s energy industry from global capital and trade channels.

Lukoil’s operations span exploration, production, refining, marketing, and distribution of oil and gas both within Russia and abroad. Several of its domestic subsidiaries, including Lukoil Perm, Lukoil West Siberia, and Lukoil Kaliningradmorneft, have been designated by the US Treasury under Executive Order 14024 for their roles in the Russian energy sector. These subsidiaries focus on geological exploration, offshore and onshore oil extraction, and the development of advanced recovery technologies.

In addition, Lukoil’s Russian Innovation Fuel and Energy Company and Uraloil have also been sanctioned for their involvement in developing new technologies and exploiting difficult oil and gas reserves. The Treasury Department described these measures as essential to limiting Moscow’s technological and financial resilience in the face of international pressure.

The forthcoming sale of Lukoil’s overseas assets marks a significant moment in the broader tightening of Western restrictions on Russian energy, highlighting how sustained sanctions continue to reshape global oil investment and production landscapes.

Based On ANI Report