Trying Again: Carlyle Group in Talks to Buy Lukoil International Assets

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Written by Paul Wiseman for IIR News Intelligence (Sugar Land, Texas)

Summary

This is Lukoil's third attempt to make U.S. sanction-forced asset sale. Previous two were nixed by U.S. Treasury Department for having Moscow ties

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Agreement Still in the Works

The U.S. having blocked two previous sale attempts, Russia's number two oil producer, Lukoil PJSC, is discussing the sale of most of its international assets to U.S. investment firm Carlyle Group. Those assets are valued at approximately $22 billion, but both parties report that no price has been agreed upon.

Lukoil's assets in Kazakhstan are excluded from the Carlyle Group offer, as the Kazakhstan Energy Ministry reports it has submitted a formal bid to the U.S. to buy them. The company also owns assets in Iraq, Bulgaria, Romania, Africa, and elsewhere, including 200 gas stations in New Jersey, New York, and Pennsylvania.

Any finalized agreement would have to be reviewed and approved by the Office of Foreign Assets Control (OFAC), the U.S. Treasury Department agency which administers sanctions. Lukoil's statement said that it continues to consider other offers while this one is in process.

The sale is in response to U.S. government sanctions aimed at ending Russia's Ukrainian invasion, which began in 2022. Under those, the U.S. Treasury had set February 28 of this year for Lukoil to divest its foreign assets.

Industrial Info is tracking 101 operational plants that are linked to Lukoil globally. Forty-two of the plants are located outside Russia. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can view a list of detailed plant profiles.

Try, Try Again

The OFAC has blocked two previous sale attempts. The first was in November, when Swiss trader Gunvor Group made an offer, which Washington denied due to an alleged close Kremlin relationship involving a key Gunvor leader. For more information on that, see November 10, 2025, article - Swiss Trader Gunvor Backs Off Deal to Buy Lukoil Assets.

A December offer involving a proposed share swap put together by Xtellus Partners, the former U.S. arm of Russian bank VTB, was also nixed for similar reasons.

Why the Rush?

The sale process started on October 22 when President Donald Trump announced sanctions on Lukoil and PJSC Rosneft Oil Company. Five days later, Lukoil announced its intent to sell its foreign assets. Pressure was also coming from elsewhere, as Great Britain and the European Union (EU) had also sanctioned the two companies. The EU's action included phasing out Russian fuel imports as well as oil.

Several recent events, including those added sanctions, have hurt the Russian economy as a whole, including Lukoil. Oil price reductions and the targeting of Russia's hidden "shadow fleet" that tries to evade the sanctions, combined to reduce the nation's oil and gas exports by 25% in 2025, said Russia's finance ministry.

Many suitors have lined up for the dance, including, according to reports, U.S. majors like Exxon Mobil, Chevron, along with Abu Dhabi Oil Company (ADNOC). To learn more, see the November 20, 2025 IIR story U.S. Denial of Gunvor Offer for Lukoil Opens Door for Others.

Additionally, OFAC is pushing for any proceeds from the sale to be placed in a U.S.-controlled account until the lifting of sanctions.

Carlyle's Plans

In a statement, the company said, "Carlyle's approach to LUKOIL International would be on ensuring operational continuity, preserving jobs, stabilizing the asset base and supporting safe, reliable performance across the portfolio by bringing to bear dedicated oversight and international operating capabilities."

An End in Sight?

In recent weeks negotiators from Russia, the U.S., and Ukraine have met to work toward an end of the war, which presumably would also end the sanctions. However, reports from those negotiations indicate that disagreements over the final status of certain land, including that currently held by Russian troops, seem intransigent, making an immediate solution unlikely.

By the Numbers

• $22 Billion: Reported value of Lukoil's international assets, although a sale price has not been set.
• February 28: Deadline set by U.S. government for Lukoil to complete asset sale.

Key Takeaways

• The Carlyle deal is Lukoil's third try to sell to a buyer that is acceptable to Washington. .
• Carlyle Group is the first potential buyer without clear ties to Moscow, so there may be more hope for this deal's success.
• The sale is in response to U.S. government sanctions aimed at ending Russia's Ukrainian invasion
• Lukoil has suffered financially as oil price reductions and the targeting of Russia's hidden "shadow fleet" of oil tankers combined has reduced the nation's oil and gas exports by 25% in 2025

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).