Russia’s Lukoil has taken another step toward exiting its overseas business, announcing a preliminary agreement with US private equity firm Carlyle to transfer ownership of Lukoil International, the holding company that controls most of the group’s assets outside Russia. The move signals a further acceleration of the company’s efforts to divest foreign operations amid mounting international pressure.
The proposed transaction would exclude Kazakhstan, where Lukoil’s assets will remain fully owned by the Russian company. Those operations are not part of the deal and will continue to function under their existing licenses, ensuring business continuity in the country.
Lukoil emphasized that the arrangement with Carlyle is not yet final. The agreement is non-exclusive and remains subject to a number of approvals, most importantly clearance from the US Treasury’s Office of Foreign Assets Control (OFAC). The company also confirmed that it is continuing talks with other potential buyers for the same portfolio of assets.
The decision to place Lukoil International on the market is directly linked to international sanctions imposed on the group and its subsidiaries. In October 2025, the United States targeted Lukoil as Russia’s second-largest oil producer, citing Moscow’s role in the war in Ukraine. The measures froze assets under US jurisdiction, restricted financial transactions involving US persons and automatically extended to majority-owned subsidiaries.
Following the sanctions, Lukoil made clear its intention to offload its overseas portfolio, a move widely viewed as one of the most significant responses by a Russian energy company since the conflict began in 2022. With production accounting for roughly 2% of global oil supply, the company’s restructuring has attracted close scrutiny from markets and regulators worldwide.
Attempts to complete a sale have so far faced regulatory obstacles. US authorities have already blocked two previous transactions involving Lukoil’s international assets, including a deal with Swiss trader Gunvor in October and a proposed share exchange arranged by Xtellus Partners in December.
Under current US guidance, Lukoil has been given a deadline of 28 February to divest its global holdings, increasing pressure on the company to secure a buyer capable of navigating complex regulatory approvals within a tightening timeframe.
