Russian oil giant Lukoil said Monday it will sell off its international assets after new U.S. sanctions targeting Russia’s energy sector took effect, marking one of the most significant corporate moves since President Donald Trump’s latest measures against Moscow.
Why It Matters
The United States announced sanctions last week on Lukoil and Rosneft, Russia’s two largest private oil companies, in an effort to tighten financial pressure over the Kremlin’s war in Ukraine. Britain followed with its own restrictions, targeting both companies and dozens of so-called shadow fleet tankers accused of helping Russia evade existing limits on oil exports.
What To Know
Lukoil, Russia’s second-largest oil producer, said the divestment would be carried out under a wind-down license from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and that it may seek an extension “to ensure uninterrupted operations.”
Newsweek has reached out to the Treasury Department via email on Monday afternoon for comment.
Among its largest foreign holdings is a 75% stake in Iraq’s West Qurna 2 oil field, one of the world’s biggest, which produced more than 480,000 barrels per day earlier this year, according to Interfax. Lukoil also owns the Neftohim Burgas refinery in Bulgaria, the Balkans’ largest, and Romania’s Petrotel refinery. It supplies oil to Hungary, Slovakia, and Turkey’s STAR refinery, which is heavily reliant on Russian crude.
The sanctions come as Western governments escalate efforts to choke off Moscow’s energy revenue and weaken its ability to fund the ongoing conflict in Ukraine. Lukoil, which produces about 2% of the world’s oil, said it remains committed to maintaining “stable operations” during the transition.
Ukrainian President Volodymyr Zelensky on Friday urged the United States to broaden its sanctions on Russian oil, calling for measures against the entire sector rather than just two companies. He also appealed for long-range missiles to strengthen Ukraine’s ability to strike back against Russian forces.
Meanwhile, Russia has tested a new nuclear-capable, nuclear-powered cruise missile designed to evade existing defense systems and is moving closer to deploying it, President Vladimir Putin said Sunday. The announcement follows years of testing the Burevestnik missile and comes amid renewed nuclear signaling from the Kremlin, which has resisted Western pressure for a cease-fire in Ukraine and warned the U.S. and NATO against supporting long-range strikes inside Russia.
Putin said he remains open to talks with Trump on a potential settlement in Ukraine but called new U.S. sanctions against Russia’s top oil companies an “unfriendly act” that would harm relations. He warned that Moscow “will not be intimidated.”
“It’s an attempt to exert pressure on Russia, but no self-respecting country and self-respecting people make any decisions under pressure,” he said.
What People Are Saying
Zelensky said Friday that the oil sanctions were “a big step,” and said “we have to apply pressure not only to Rosneft and Lukoil, but to all Russian oil companies.”: “Besides, we are carrying out our own campaign of pressure with drones and missiles specifically targeting the Russian oil sector."
Russian broadcaster Vladimir Solovyov said on his radio show last week after the sanctions were announced: “The Trump we knew temporarily has evaporated.”
He added: “Trump violated the spirit of Anchorage. … Disrespect was demonstrated toward our president.”
Dmitry Medvedev, the deputy chairman of Russia's security council and a former president, said last week in a post on the messaging app Telegram: "If any of the many commentators still harbored illusions — here you go. The U.S. is our enemy, and their talkative 'peacemaker' has now fully taken the road to war with Russia."
What Happens Next
Lukoil said it has begun reviewing bids from potential buyers but did not specify which assets are up for sale.
Updates: 10/27/25, 7:46 p.m. ET: This article was updated with new information and remarks.
