Lukoil agrees to sell international assets to Carlyle Group
Russian oil giant Lukoil has signed an agreement to sell its international assets to US investment group Carlyle. The world’s second-largest oil producer announced the deal on its website. The transaction does not include assets in Kazakhstan, which the Russian company will retain. The report did not disclose the value of the deal, which still needs approval from the US government. The transaction is also subject to the outcome of an internal audit, Carlyle Group told Reuters.
The sale is driven by international sanctions imposed on Russia’s energy sector over its invasion of Ukraine. Last October, the United States added Lukoil to its sanctions list, accelerating the sale.
Lukoil International GmbH, the division that controls Lukoil’s foreign assets, is based in Vienna. Its holdings include refineries in Europe, stakes in oil fields in Uzbekistan, Iraq and Mexico, and hundreds of filling stations around the world. Their value, including assets in Kazakhstan, is estimated at around 22 billion dollars (446.63 billion Kč).
Carlyle Group said it would focus on ensuring operational continuity, preserving jobs, stabilising assets and “supporting the safe and reliable performance of the entire portfolio through dedicated oversight”.
Media reports have mentioned various potential buyers for Lukoil’s foreign assets. The Russian producer accepted an offer from Swiss company Gunvor at the end of October, but the company withdrew it shortly afterwards following criticism. Hungary’s energy group MOL and Austrian businessman Bernd Bergmair were also reported to be interested. Bergmair was previously the majority owner of media group MindGeek, which includes the popular pornography website Pornhub.
Last October, the US government added oil companies Lukoil and Rosneft, along with dozens of their subsidiaries, to its sanctions list. In December, however, it suspended some sanctions against Lukoil in an effort to allow filling stations outside Russia to continue operating. According to a related statement, it authorised transactions involving filling stations “to avoid penalising” customers and their suppliers, provided that the proceeds did not go to Russia. The exemption is in effect until 29 April this year.
Lukoil previously also operated a network of filling stations in the Czech Republic. The Hungarian group MOL took over the stations in 2014.
Translation disclaimer
This article is a machine translation of the Czech original and has not yet been fully reviewed. In case of any doubt, please refer to the Czech version.
