Headlines
Lukoil's foreign assets attract rush of buyers
Published by Global Banking and Finance Review
Posted on November 12, 2025
3 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 12, 2025
3 min readLast updated: January 21, 2026
Lukoil's foreign assets are drawing interest from global bidders as U.S. sanctions approach. Companies like KazMunayGas and Shell are exploring bids.
By Shariq Khan, Isaac Anyaogu and Anna Hirtenstein
(Reuters) -From Egypt to Kazakhstan, the foreign assets of Russian oil major Lukoil are attracting potential bidders as time runs out to clear deals before U.S. authorities enforce sanctions.
The U.S. has hit Lukoil with sanctions as part of its effort to bring the Kremlin to peace talks over Ukraine, and has already blocked Lukoil's attempt to sell foreign assets to trader Gunvor ahead of the November 21 sanctions deadline.
The sanctions have also already disrupted Lukoil's operations in Iraq, at pump stations in Finland and a refinery in Bulgaria.
As its empire creaks, governments and partners are hoping to snap up its foreign assets on the cheap. Lukoil didn't reply to requests for comment.
BIDDERS CIRCLE
Kazakhstan's state firm KazMunayGas is studying a bid for Lukoil's assets in the country, said two sources familiar with the matter.
Lukoil has a stake in Karachaganak, one of the world's largest gas and condensate fields, with Eni, Shell, Chevron and KazMunayGas.
Any new partnership will be decided by the project's participants, taking into account the sanctions, Kazakhstan's energy ministry said in a statement.
Shell is interested in Lukoil's deepwater blocks in Ghana and Nigeria, two other sources said. Shell declined to comment.
In Egypt, Lukoil has indicated to the government its possible plans to sell out, a fifth source familiar with the situation said. Lukoil holds three concessions in Egypt. Egypt's petroleum ministry didn't respond to a request for comment.
The government of Moldova has started talks to nationalise Lukoil’s infrastructure at Chisinau airport, the airport’s director Serdgiu Spoiala said on Tuesday.
Bulgaria is preparing to seize Lukoil’s Burgas refinery. Azerbaijan's state firm Socar and Cengiz Holding of Turkey jointly bid for the refinery before the sanctions.
Cengiz aims to proceed with the deal, Turkish media reported this week. Cengiz didn't immediately respond to a request for comment.
LUKOIL'S OPTIONS
Lukoil faces difficult choices, said Sergey Vakulenko, a senior fellow at the Carnegie Russia Eurasia Center and former head of strategy at Russian oil firm Gazprom Neft.
If the company sells its assets, the proceeds could be frozen by the U.S. Treasury, he said.
But delaying action would likely mean state takeovers of some assets or their freezing, said Vakulenko, and Igor Yushkov from the Financial University of the Russian government.
"There's really no point for Lukoil to rush," said Yushkov. "If some assets are frozen, they're frozen. Just wait until the conflict in Ukraine ends, and then maybe sanctions will be eased. That's the lesser evil, probably."
Lukoil may try to emulate the strategy of Russian oil firm Rosneft, which saw Germany put its three refineries under a trusteeship in 2022. The plants are now controlled by Berlin but Rosneft still owns them.
"Either you sell it yourself and hope you'll get the proceeds, or you try to retain ownership," Vakulenko said.
(Reporting by Anna Hirtenstein and Enes Tunagur in London, Olesya Astakhova in Moscow, Mohamed Ezz in Cairo, Shariq Khan in New York, Isaac Anyaogu in Lagos, Alexander Tanas in Chisinau, and Tamara Vaal in Astana. Editing by Dmitry Zhdannikov and Mark Potter)
A foreign asset is an investment or property owned by an individual or entity in a country other than their own. This can include stocks, real estate, or business interests located abroad.
A bid in finance refers to an offer made by an investor or buyer to purchase a security or asset at a specified price. It indicates the maximum price that the buyer is willing to pay.
A refinery is an industrial facility where crude oil is processed and transformed into various petroleum products, such as gasoline, diesel, and other chemicals. Refineries play a crucial role in the oil and gas industry.
A stake in a business refers to an ownership interest or share in that business. It represents the percentage of the company that an individual or entity owns, which can entitle them to profits and decision-making.
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