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Carlyle drops out of race for Lukoil international assets - Finance news and analysis from Global Banking & Finance Review
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Carlyle drops out of race for Lukoil international assets

Published by Global Banking & Finance Review

Posted on October 9, 2026

2 min read

· Last updated: October 9, 2026

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Carlyle Withdraws from Bidding on Lukoil International Assets Amid Sanctions

Overview of Carlyle's Decision and Lukoil Asset Sale

Carlyle Group's Withdrawal from the Deal

LONDON, Oct 9 (Reuters) - US private equity firm Carlyle Group said on Friday it was no longer actively pursuing a deal to acquire international assets of Russia's second-largest oil producer Lukoil, a spokesman for the firm said.

The group did not comment further.

Background: Sanctions and Asset Sales

Impact of US Sanctions on Russian Oil Majors

The assets were put up for sale last year following sanctions imposed by the United States over Russia's war in Ukraine. Another Russian oil major, Rosneft, was also sanctioned, but it has not announced any divestments.

Initial Agreement and Potential Partners

Carlyle had initially agreed on January 29 to buy Lukoil's assets, excluding those in Kazakhstan. The fund was in talks to partner with Abu Dhabi-based funds Mubadala, XRG and IHC, as well as the US Development Finance Corporation for the deal, according to people familiar with the matter.

Interest from Other Potential Buyers

Valuation and Competing Bidders

The Lukoil portfolio, initially valued at around $22 billion, had attracted interest from at least a dozen companies including Exxon Mobil and the former owner of Pornhub, Bernd Bergmair.

Todd Boehly's Bid and Government Backing

The Financial Times reported last month that US billionaire businessman Todd Boehly secured the backing of the US government and Gulf power brokers with ties to Donald Trump's family to bid for Lukoil's international assets.

Reporting Credits

(Reporting by Shadia Nasralla; writing by Vladimir Soldatkin;Editing by Elaine Hardcastle)

Key Takeaways

  • Carlyle signed a conditional, non‑exclusive agreement to buy Lukoil’s international assets (excluding Kazakhstan) on January 29, 2026, pending U.S. OFAC approval (lukoil.com)
  • The deal, reportedly valued around $22 billion, failed to close as the Office of Foreign Assets Control repeatedly delayed approval, causing the agreement to lapse by late July 2026 (coindesk.cc)
  • With Carlyle’s exit, Lukoil is intensifying talks with other suitors amid continuing sanctions, while key refineries in Europe remain idle and regulatory uncertainty persists (interfax.ru)

References

Frequently Asked Questions

Why did Carlyle drop out of the race for Lukoil's international assets?
Carlyle Group decided to no longer pursue the acquisition of Lukoil's international assets, following US sanctions over Russia's war in Ukraine.
Who else showed interest in Lukoil's international assets?
Other interested parties included Exxon Mobil, Bernd Bergmair, and a consortium led by Todd Boehly with support from US and Gulf investors.
What was the estimated value of Lukoil's international asset portfolio?
Lukoil's international asset portfolio was valued at around $22 billion.
Which other Russian oil companies were sanctioned?
Along with Lukoil, another Russian oil major, Rosneft, was also sanctioned by the United States.
Was Carlyle partnering with any other funds for the Lukoil deal?
Carlyle was in talks with Abu Dhabi-based funds such as Mubadala, XRG, IHC, and the US Development Finance Corporation for the deal.

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