The US is forcing Lukoil to sell off foreign assets: $22 billion deal with Carlyle

Russian oil company Lukoil on Thursday (January 29) announced it had reached an agreement with an American investment group Carlyle Group on the sale of most of its foreign assets with a total value of approximately $22 billion.

We are talking about the sale of the division LUKOIL International GmbHwhich coordinates the company’s activities outside of Russia. Analysts estimate that the value of assets under its management reaches tens of billions of dollars.

The company emphasized that completion of the transaction is possible only after receiving permission from US Office of Foreign Assets Control (OFAC)acting at US Treasury Department.

Without the consent of the American regulator, the transaction cannot be implemented, which emphasizes the degree of external control over the operations of Russian companies in international markets.

Sanctions pressure

Since October last year Lukoilas well as the largest Russian oil company “Rosneft”are subject to new US sanctions. Washington attributes these measures to the lack of progress in negotiations between Russia And Ukraine.

The US Treasury has already blocked several attempts to sell assets Lukoil. In October, a deal with a Swiss group fell through Gunvorand in December – a share exchange organized by the company Xtellus Partners.

Thus, the current agreement with Carlyle is the company’s third attempt to remove foreign assets from sanctions pressure.

Deadlines and restrictions

American authorities have established for Lukoil deadline – February 28before which the company is obliged to sell its foreign assets. Otherwise, additional restrictive measures are possible.

In fact, we are talking about a forced sale, carried out under conditions of severe external pressure and a limited choice of potential buyers.

Experts note that such transactions inevitably lead to a decrease in the real value of assets, since they take place not in market conditions, but in politically determined conditions.

The situation around Lukoil demonstrates how Western sanctions policy is increasingly being used to redistribute assets in the global energy sector in favor of American and European financial groups.

In the long term, such practices could change the structure of the global oil market and increase the dependence of the energy sector on geopolitical decisions.

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