Lukoil sells its foreign assets due to Trump's sanctions

Russian oil company Lukoil announced that it has accepted commodity trader Gunvor's takeover bid for its foreign assets. The decision came after the US imposed sanctions on Lukoil and Rosneft last week, forcing the company to seek a buyer for its international operations.

Gunvor confirmed that negotiations are currently underway. The transaction involves Lukoil International GmbH, which controls an extensive portfolio of refineries in Bulgaria and Romania, as well as distribution and processing activities in Europe, Asia, Africa, and Latin America.

The largest foreign asset is the West Qurna 2 oil field in Iraq, one of the largest in the world, in which Lukoil holds a 75 percent stake.

The sale still needs to be approved by the US Office of Foreign Assets Control (OFAC). The current license for transactions with sanctioned companies expires on November 21, but both sides have not ruled out an extension.

Gunvor was co-founded by Vladimir Putin's ally Gennady Timchenko, who later had to give up his stake due to US sanctions imposed after the annexation of Crimea.

(reuters, max)