Lukoil reaches agreement with US-based Carlyle on sale of foreign assets, including those in Serbia

Russia’s second-largest oil producer, Lukoil, said it had agreed to sell most of its foreign assets to the American investment company Carlyle Group. The transaction, worth about USD 22 billion, is pending approval from OFAC.

Lukoil said it had reached an agreement with Carlyle to sell its subsidiary Lukoil International, which includes Lukoil Serbia.

– The agreement signed is not exclusive for the Company and is subject to some conditions precedent such as procurement of necessary regulatory approvals including permission of the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) for the transaction with Carlyle – Lukoil’s press release said, as reported by Reuters.

Lukoil and Russia’s largest oil producer Rosneft were sanctioned by the US last October in what Washington said was a response to slow progress in peace talks between Russia and Ukraine.

Washington has so far blocked two proposed deals, first between Lukoil and Swiss trading group Gunvor in October, and then a proposed share swap engineered by Xtellus Partners, the former US arm of Russian bank VTB, in December.

The US Treasury had given Lukoil until February 28 to sell its global portfolio.

Lukoil Srbija a.d. Beograd

Lukoil

Lukoil international

Lukoil Serbia

Carlyle Group

Gunvor

Xtellus Partners

OFAC

sale of Lukoil assets