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Lukoil Agrees to Sell International Unit to Gunvor After U.S. Sanctions

The planned sale remains contingent on OFAC approval under a temporary wind-down license.

Overview

  • Lukoil said it accepted Gunvor’s offer to acquire Lukoil International GmbH, which holds the company’s foreign assets.
  • The company stated it will not negotiate with other potential bidders and said key terms have been agreed.
  • Completion of the deal requires permission from the U.S. Treasury’s Office of Foreign Assets Control and approvals in other relevant jurisdictions.
  • OFAC issued a wind-down license that allows limited transactions with Lukoil and Rosneft until November 21, and the parties said they may seek an extension to maintain operations and banking services until closing.
  • Lukoil’s overseas portfolio includes Iraq’s West Qurna 2 oil field and refineries in Bulgaria and Romania, and analysts quoted by Izvestia suggest the sale could come at a steep discount.