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Lukoil to Sell Foreign Assets as U.S. Sanctions Take Hold and Ukraine Expands Long-Range Strikes

The company’s divestment under a U.S. wind-down license underscores Washington’s effort to choke off Kremlin oil revenues.

Overview

  • Lukoil said it has begun reviewing bids to offload international holdings under an OFAC wind-down license that runs to Nov. 21 and signaled it may seek an extension to complete sales.
  • The U.S. sanctioned Rosneft and Lukoil, with Treasury citing Russia’s refusal to agree to a ceasefire, and warned of secondary sanctions that are already reshaping financing, shipping and insurance.
  • Reports indicate disruption among major buyers as some Indian refiners pause new orders and Chinese state oil companies suspend seaborne purchases of Russian crude following the new measures.
  • President Volodymyr Zelenskyy said Ukrainian strikes have reduced Russia’s oil refining capacity by about 20% and vowed to broaden deep attacks largely using domestically produced long-range weapons.
  • Cross-border pressure escalated with a Ukrainian strike damaging a dam near Belgorod and repeated drone attacks toward Moscow reported by Russian authorities, as Vladimir Putin revived nuclear rhetoric by touting readiness of the Burevestnik missile.