General – Foreign Assets
Russia’s second-largest oil producer Lukoil announced that it has agreed to sell its foreign assets to commodity trading giant Gunvor after it was targeted by US sanctions last week.
In a statement on Thursday, Lukoil said it received an offer from Cypriot-domiciled Gunvor Group to purchase its fully owned subsidiary, Lukoil International, a holding venture for the oil producer’s international assets.
Lukoil had to quickly develop a plan for its international portfolio after being affected by US sanctions on October 22. The US Treasury’s Office of Foreign Assets Control (OFAC) issued a notice giving international companies dealing with Lukoil and its subsidiaries until November 21 to terminate their business relationships with the sanctioned entities.
“The key terms of the transaction have been agreed upon by the parties. Lukoil has accepted the offer, having undertaken not to negotiate with other potential buyers,” Lukoil said in a statement.
Neither Lukoil nor Gunvor disclosed the amount and terms of the offer.
