LUKOIL IS RAPIDLY SELLING ITS FOREIGN ASSETS TO AN INTERNATIONAL TRADER.

Gunvor, a major player in the oil and LNG sector, will acquire Lukoil's international operations. The Russian company announced the sale following the introduction of US sanctions against Lukoil, which will take effect on November 21. The sale will include refineries in Europe and production facilities worldwide.

LUKOIL announces that it has received an offer from Gunvor Group Ltd. for the acquisition of LUKOIL International GmbH (a wholly-owned subsidiary of PJSC LUKOIL, owner of the international operations of the LUKOIL Group). The key terms of the transaction were previously agreed upon between the parties. PJSC LUKOIL, for its part, accepted the offer, committing not to negotiate with other potential buyers, the Russian company reported.

They noted that the conclusion of a binding transaction agreement is subject to the satisfaction of conditions precedent, including the buyer's authorization from the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), as well as, if necessary, other licenses, permits, and approvals in other countries.

"If necessary, the parties intend to apply for an extension of the current OFAC license, as well as other permits, to ensure the continuity of the operational activities of the international business and related banking services until the transaction is completed," Lukoil reported.

They explained that the sale of LUKOIL International GmbH is linked to the introduction of restrictive measures by certain states against the company and its subsidiaries.

Experts estimated Lukoil's international assets at $10 billion and predicted that the Russian company would have to offer discounts of up to 50-70% to quickly sell its projects. These include three refineries in the Netherlands, Bulgaria, and Romania, as well as production projects in Africa, the Middle East, Asia, and the Caucasus. The company also operates a network of over 5,000 service stations, including in the United States.