Lukoil sells foreign assets to Gunvor due to sanctions

The Russian energy group "Lukoil" announced today the acceptance of an offer from the multinational commodity trading company "Gunvor". The announcement, published on the concern's website, concerns the purchase of "Lukoil International" (Lukoil International GmbH), which controls the foreign assets of the oil giant, Reuters reports.

This development comes against the backdrop of new sanctions imposed by Washington last week, following Moscow's war in Ukraine. Already on Monday, "Lukoil" announced its intention to sell its international assets.

The planned deal represents the most significant action so far by a Russian company in response to Western sanctions introduced after the Russian invasion of Ukraine in February 2022. Obviously, the events are gaining exceptional importance.

The main terms of the deal have already been agreed between the companies. "Lukoil" for its part accepted the offer, agreeing not to negotiate with other potential buyers, " the company's statement regarding the offer of "Gunvor" says.

"Gunvor" confirmed that it has held talks with "Lukoil" regarding the possible acquisition of the Russian company's foreign assets.

The sale of the assets is in accordance with a license to cease operations issued by the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury.

If necessary, the company plans to apply for an extension of the license to ensure the continuous operation of its international assets, the announcement adds.

The US imposed sanctions on the two largest Russian oil companies "Rosneft" and "Lukoil" last week in connection with the war in Ukraine, BTA reminds.

Representatives of the authorities in Bulgaria confirmed that the refinery in Burgas and several other subsidiaries, which represent the "Lukoil" group in Bulgaria, meet the criteria for sanctions from the US. Justice Minister Georgi Georgiev said at the end of last week that the new sanctions against "Lukoil" will come into force in a month.

On October 24, the parliament decided that the sale of the Russian company's assets in Bulgaria will be carried out only after a decision of the Council of Ministers (CM) and with a positive opinion of the State Agency "National Security" (DANS). The MPs adopted at second reading an addition to the Investment Promotion Act.

"Gunvor" is one of the largest independent trading companies in the world, specializing in trading energy products, including crude oil, natural gas and refined petroleum products. The "Gunvor_q_ page states that the company has about 1,700 employees worldwide.