Lukoil accepts Gunvor's offer to acquire foreign assets, deal requires OFAC approval
MOSCOW. Oct 30 (Interfax) - Lukoil , which put its foreign assets up for sale after the introduction of U.S. and UK sanctions, has received and accepted an offer to purchase them from the international commodity trader Gunvor.
The deal involves the acquisition of 100% of Lukoil International GmbH, according to a statement from the Russian oil company.
The key terms of the deal have been agreed upon by the parties, Lukoil said. The company committed not to negotiate with other potential buyers.
At the same time, for the transaction to proceed and namely for the conclusion of a binding agreement, the issuance of a permit from the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) is required, as well as other licenses, permits, and approvals in other countries if necessary, Lukoil said.
"If necessary, the parties plan to seek an extension of the current license issued by OFAC, as well as other permits, to ensure uninterrupted operational activities of the international assets and their banking services until the completion of the transaction," it said.
The sale of the company's foreign assets is related to the introduction of restrictive measures against the company by certain states, it said.
The U.S. Treasury Department included Lukoil and Rosneft in the sanctions list last week, issuing a license to wind down operations by November 21.
Lukoil was included in the UK sanctions list on October 15, while international projects in Azerbaijan and Kazakhstan involving Lukoil and Rosneft were immediately exempted from sanctions until October 14, 2027 - specifically, the CPC (Caspian Pipeline Consortium), Tengizchevroil, Shah Deniz, South Caucasus Pipeline, Azerbaijan Gas Supply Company and Karachaganak projects.
Also last week, its trading subsidiary Litasco Middle East DMCC was included in the European Union's sanctions list.
According to information on the company's website, Lukoil participates in projects in Azerbaijan, Kazakhstan, Uzbekistan, Iraq, Egypt, Cameroon, Nigeria, Ghana, Mexico, the UAE and the Republic of the Congo. The company owns refineries in Bulgaria, Romania and the Netherlands.
