Lukoil has started considering bids from potential buyers, according to a company press release

Russian oil major Lukoil has announced plans to divest its foreign assets following the imposition of Western sanctions on the company and its subsidiaries.

Lukoil, along with Russia's other major oil producer, Rosneft, was targeted by US sanctions announced last week by President Donald Trump, which followed similar UK sanctions against the two firms. The announcement triggered a spike in global oil prices.

Under a US Treasury license, the two companies are allowed to complete ongoing operations until November 21.

Lukoil is Russia's second-largest oil producer, accounting for around 2% of global output. Founded in 1991 by Soviet decree and spearheaded by then deputy oil and gas minister Vagit Alekperov, who remains a co-owner, the company employs more than 100,000 people globally. It operates projects in the Balkans, the Middle East, Africa, Central Asia, several EU countries, and the United States. By the end of 2024, Lukoil maintained a retail network of some 2,500 fuel stations in 20 countries, exporting 730,000 barrels of crude per day and around 300,000 bpd of petroleum products. The company reported a 2024 net profit of $10 billion.

Lukoil has started considering bids from potential buyers, according to a press release issued late on Monday. The divestment process is being conducted under the wind-down license, which the company said it may seek to extend if needed "to ensure uninterrupted operations of its international assets."

Trump cited Moscow's alleged "lack of" commitment to the Ukraine peace process for imposing the sanctions. Moscow has maintained it is seeking a lasting solution to end the conflict. Kiev and its Western backers have repeatedly called for an immediate ceasefire, while Moscow says this would only allow Ukraine to regroup its military and receive more arms.

Russia has long said that Western sanctions are illegal and are backfiring on those who impose them. President Vladimir Putin described Washington's move as "unfriendly," but said it would not have a significant impact on the economy.

While visiting the US this week, Putin's aide Kirill Dmitriev stated that "the language of pressure does not work with Russia" and that only constructive dialogue could "bear fruit."

(RT.com)