Russian oil giant “Lukoil“, the second largest oil producer in Russia, is conducting new negotiations with potential buyers for its foreign assets after the deal with Swiss trading company “Gunvor“ was terminated. New US and UK sanctions come into effect in the coming days, the company said in a statement, BTA reports.
“The specific deal will be announced after reaching final agreements and receiving regulatory approvals“, Lukoil noted, emphasizing that their goal is to ensure the continuous operation of the assets and avoid disruptions in the supply of energy resources, while preserving jobs.
Last month, the Office of Foreign Assets Control (OFAC) under the Ministry of The US Treasury Department has imposed sanctions on Lukoil and Rosneft as part of pressure on Russia to end its military operations in Ukraine. The US has given international companies until November 21 to end ongoing deals with Lukoil, including acquisitions of international assets.
The initial deal with Gunvor was blocked after a signal from the US Treasury. According to industry sources, Lukoil is looking for alternative buyers to avoid the risk of blocking the activities of its foreign units.
Earlier today, Britain issued a special license allowing businesses to continue working with two Bulgarian subsidiaries of Lukoil. GERB leader Boyko Borisov said he expected Bulgaria to receive a derogation from US sanctions against Lukoil, similar to the one used by Germany for a period of six months.
British sanctions against major Russian oil companies, including Lukoil and Rosneft, were imposed for their role in financing the Russian invasion of Ukraine. Similar measures were also introduced by the United States. In October, the United Kingdom and the United States issued special licenses for Rosneft's German subsidiaries, as they are under German state control.
Borisov announced that a person had already been selected as a special manager, without naming him. Later, Economy and Industry Minister Petar Dilov announced that the government had proposed Rumen Spetsov as a special sales representative at “Lukoil Neftokhim“, and he was appointed to the position hours later.