Russian Oil Giant Lukoil to Divest International Assets Following US Sanctions Over Ukraine Conflict

Russian oil giant Lukoil has announced plans to divest its international assets following sanctions imposed by the United States over Russia's ongoing military actions in Ukraine.

The company released a statement on Monday confirming that the bidding process for these assets has already commenced, directly responding to the restrictive measures implemented by various nations.

These sanctions came as part of President Donald Trump's first major sanctions package against Russia, which specifically targeted two prominent oil companies - Lukoil and Rosneft. Trump expressed frustration that Moscow had failed to cease its military operations in Ukraine.

Diplomatic efforts to resolve the conflict have stalled in recent months, despite earlier initiatives that included the first direct talks between Russian and Ukrainian representatives in over three years.

Prior to announcing the sanctions, Trump canceled a scheduled summit with Russian President Vladimir Putin. In response, Putin described the sanctions as "serious" but maintained they were insufficient to devastate the Russian economy, which already operates under numerous international restrictions.

The US sanctions effectively freeze all Rosneft and Lukoil assets within American jurisdiction and prohibit US companies from conducting business with these entities. Additionally, both companies have been added to the SDN (Specially Designated Nationals) list, a registry widely recognized internationally and particularly feared in business circles.

Washington has given companies currently working with these Russian entities a one-month grace period to terminate their relationships or face secondary sanctions. These secondary measures would cut them off from access to US financial institutions, traders, shipping services, and insurance providers.

Together, Lukoil and Rosneft represent approximately 55 percent of Russia's total oil production capacity.