Why Buyers Are Eyeing Lukoil's International Assets: Key Insights

A portion of a staircase outside Lukoil's headquarters in Moscow reflects a plaque with the company's name on October 23, 2025. Amid ongoing geopolitical tensions and impending U.S. sanctions, potential bidders from various countries, including Egypt and Kazakhstan, are closely monitoring Lukoil's foreign assets. The urgency increases as the deadline for completing transactions approaches before the sanctions take effect.

The Impact of U.S. Sanctions on Lukoil

The U.S. has imposed sanctions on Lukoil as part of its strategy to exert pressure on Russia regarding its ongoing conflict with Ukraine. These restrictions have blocked Lukoil’s efforts to sell its assets to the trader Gunvor before the impending deadline of November 21. The sanctions have already had a noticeable impact on Lukoil’s operations across several countries, including Iraq, which has strained their ability to function effectively.

Struggling Operations Abroad

Lukoil's operational capabilities are under significant pressure, particularly in regions like Iraq, where the sanctions have taken a toll. In addition to Iraq, the restrictions also extend to pump stations in Finland and a refinery located in Bulgaria. With Lukoil's international assets facing increased scrutiny and complications, various governments and potential partners have recognized an opportunity to acquire these assets at a potentially reduced price.

Countries Eyeing Lukoil's Assets

In light of Lukoil's current predicament, multiple countries are showing interest in its international holdings. Notably, Kazakhstan's state-run firm KazMunayGas is reportedly exploring a bid for Lukoil's assets within the country. These include a stake in the Karachaganak gas and condensate field, which is co-owned with major industry players such as Eni, Shell, and Chevron.

Potential Partnerships and Future Directions

The future of any partnership with Lukoil will be dictated by its current stakeholders, especially amid ongoing sanctions considerations. Furthermore, Shell has expressed interest in acquiring Lukoil's deepwater assets located in Ghana and Nigeria, enhancing the competitive landscape surrounding these resources.

In Egypt, Lukoil has proactively informed the government about its possible plans to divest, given that it currently holds three key concessions in the country. Meanwhile, Moldova is initiating discussions to nationalize Lukoil's infrastructure at Chisinau International Airport, as stated by airport director Serdgiu Spoiala.

Regional Developments: Bulgaria and Beyond

Bulgaria, on the other hand, is preparing to take control of Lukoil's Burgas refinery. International bids from Azerbaijani state-owned Socar and Turkey's Cengiz Holding have emerged, with reports indicating that Cengiz is particularly keen to proceed with its interest in the refinery.

Strategic Decisions Ahead for Lukoil

Lukoil faces a challenging crossroads, as highlighted by experts like Sergey Vakulenko, a senior fellow at the Carnegie Russia Eurasia Center. The