Russia’s Lukoil has accepted an offer from commodity trader Gunvor Group to acquire Lukoil International GmbH, the vehicle that holds the company’s foreign assets.
The decision follows the United States’ designation of Lukoil under expanded Russia-related sanctions announced on 22 October 2025. Lukoil said it would not negotiate with other bidders while the Gunvor proposal is progressed.
In a statement on 30 October, Lukoil said key terms of the transaction had already been agreed with Gunvor. The company described the approach as an offer to purchase Lukoil International GmbH, a wholly owned subsidiary that consolidates non-Russian operations. Lukoil published the announcement on its website.
The prospective sale will require authorisation from the US Treasury’s Office of Foreign Assets Control (OFAC). OFAC has issued a wind-down licence allowing companies to conclude transactions involving Lukoil and Rosneft until 21 November 2025; Lukoil said the parties may seek an extension if needed.
Washington’s 22 October measures targeted Russia’s two largest oil companies, Rosneft and Lukoil, under Executive Order 14024, and also designated a number of subsidiaries. The Treasury said all property and interests in property of the designated persons in the United States or in the possession or control of US persons are blocked, unless authorised by licence.
The European Union adopted its 19th package of sanctions on 23 October, tightening restrictions across energy, finance and other sectors. The package includes a phased prohibition on Russian liquefied natural gas (LNG) imports and additional financial measures. The Council of the EU and the European Commission both outlined the scope of the new measures last week.
Gunvor confirmed it was in talks with Lukoil, according to Reuters. The trading house expanded rapidly in the 2000s as a major handler of Russian crude. Its former co-owner Gennady Timchenko sold his stake after being sanctioned by the United States in 2014 following Russia’s annexation of Crimea; Gunvor has been under different ownership since then.
Lukoil had flagged earlier this week that it intended to dispose of its international portfolio in response to the tightened Western measures. The company has been among the most internationally active Russian producers, with upstream and downstream positions in Europe, the Middle East and other regions. Media reports list assets that include Iraq’s West Qurna-2 field, a majority stake in the Lukoil Neftochim Burgas refinery in Bulgaria, the Petrotel refinery in Romania, and various marketing and logistics interests.
The scope and valuation of the proposed transaction have not been disclosed. Analysts note that sanctions compliance, regulatory approvals and the structure of any wind-down arrangements will determine timing and asset perimeter. Under OFAC rules, transactions involving designated entities generally require specific or general licences, and foreign financial institutions facilitating significant transactions could themselves face secondary sanctions.
The sanctions have begun to alter trade flows. Indian refiners, which had become significant buyers of discounted Russian crude, are reviewing their exposure. Reliance Industries has purchased additional Middle Eastern and US barrels in recent days as it reassesses supply following the new US measures against Rosneft and Lukoil. Press reports also indicate Indian state-run refiners are considering suspending imports of Russian crude while they seek guidance.
If completed, the Lukoil–Gunvor deal would mark one of the most consequential restructurings by a Russian corporate since the latest round of sanctions. For European markets, attention will focus on compliance and operational continuity at assets located within the EU or reliant on EU customers, in light of the bloc’s 19th package and national enforcement. For counterparties outside the EU and US, banks and traders will be assessing whether risk controls and licences provide sufficient comfort to process payments, insure cargoes and maintain logistics.
Neither Lukoil nor Gunvor has provided details on price, governance or transitional arrangements for staff and operations. Reuters reported that Lukoil accounts for about 2% of global oil output and highlighted the breadth of its foreign portfolio, from Iraq to the Balkans. Any changes in ownership will likely require the consent of host governments and joint-venture partners, alongside sanctions approvals.
Regulators will also scrutinise whether the transaction structure ring-fences sanctioned persons and activities. The US Treasury said on 22 October that all entities owned 50% or more by Rosneft or Lukoil are considered blocked, even if not individually named, underscoring the need for clear delineation of assets and financing. The parties’ indication that they will not pursue parallel talks with other bidders suggests a single-track process subject to licence conditions.
Lukoil’s statement did not set a timetable. With a wind-down window currently running to 21 November, transaction sequencing will depend on the availability of general or specific licences and on regulatory review in relevant jurisdictions. Market participants will watch for subsequent notices from OFAC and from EU and UK authorities as implementation proceeds.
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