LUKOIL, the Russian energy giant, is selling its international assets in Iraq to Switzerland’s Gunvor Group. The asset sale comes amid escalating U.S. sanctions targeting Russian energy companies.
The company confirmed the transaction on Thursday. U.S. sanctions against LUKOIL and Rosneft aim to pressure Russia over the ongoing war in Ukraine. Consequently, LUKOIL is acting quickly to secure buyers.
LUKOIL has begun discussions with potential investors. The asset sale must conclude within the sanctions grace period, which ends on November 21. The company has stated that it will not negotiate with other bidders.
The most valuable overseas asset involved is Iraq’s West Qurna 2 oil field. LUKOIL owns a 75 percent stake in this field, which produced more than 480,000 barrels per day in April. The site has long been central to LUKOIL’s international portfolio.
Gunvor Group, headquartered in Geneva and registered in Cyprus, specializes in global energy trading. The acquisition will expand Gunvor’s operations in the Middle East while maintaining production at West Qurna 2.
U.S. regulatory approval remains essential. The Office of Foreign Assets Control (OFAC) must clear the transaction before it can finalize. LUKOIL continues to coordinate closely with regulators to ensure compliance.
Analysts note that the asset sale reflects broader geopolitical pressures on Russian energy firms. Companies face increasing difficulty operating in international markets due to sanctions and financial restrictions.
The transaction allows LUKOIL to reduce international exposure. By focusing on domestic operations, the company secures liquidity while mitigating risk in volatile foreign markets.
For Gunvor, the asset sale represents an opportunity to strengthen its position in global oil production. The company can implement technical improvements and invest in long-term operations at West Qurna 2.
Overall, the asset sale reshapes the regional energy landscape. LUKOIL limits its overseas risks, and Gunvor gains a strategic foothold in one of the world’s largest oil-producing regions.
