Carlyle Group moves to acquire Lukoil's $22 billion global portfolio under US pressure
Russian oil major Lukoil, currently under US sanctions, has agreed to divest its vast international portfolio to the American private equity firm Carlyle Group.
The deal, valued at approximately €20.4 billion, was announced on January 29. It marks a decisive retreat for Russia’s second-largest oil producer from the global stage.
A race against the deadline
The US Treasury has set a strict deadline of February 28 for Lukoil to finalize the sale of its global assets. This move follows sanctions imposed last October by the Trump administration.
Washington cited stalled peace negotiations between Russia and Ukraine as the primary reason for the measures. The sanctions aim to leverage economic pressure to end Europe’s most severe conflict since World War II.
Scope of the divestment
The agreement covers Lukoil International GmbH, which manages the company’s operations across Europe, the Middle East, Africa, Central Asia, and Mexico.
The portfolio includes high-value stakes in Iraq’s West Qurna 2 oil field and major refineries in Bulgaria and Romania. However, the deal is not yet final.
Regulatory hurdles and competition
"The signed agreement is non-exclusive and subject to several conditions, including approval from the US Treasury’s Office of Foreign Assets Control (OFAC)," Lukoil stated.
Carlyle, which manages $474 billion in assets, emerged as the lead buyer despite interest from Exxon Mobil, Chevron, and Saudi Arabia’s Midad Energy. Two previous attempts by Lukoil to sell assets were blocked by US authorities.
The Kazakhstan exception
The sale specifically excludes Lukoil’s interests in Kazakhstan. On Wednesday, the Kazakh government submitted a formal bid to US authorities to acquire these stakes directly.
These assets include the Caspian Pipeline Consortium and the Tenghiz oil field. If Carlyle’s acquisition is approved, it will signal the definitive end of Lukoil's three-decade international expansion.
Translation by Iurie Tataru
