Russia’s second-largest oil producer, Lukoil PJSC, has announced plans to sell its foreign assets following sanctions imposed by the United States and the United Kingdom. The divestment process is being conducted under a wind-down licence from the US Treasury’s Office of Foreign Assets Control, and the company said it is prepared to seek an extension to “ensure uninterrupted operations of its international assets.”

The company cited the “introduction of restrictive measures against the company and its subsidiaries by some states” as a key factor behind the decision. Lukoil is currently considering bids from potential buyers for its overseas operations, which include upstream businesses in former Soviet countries such as Kazakhstan, Uzbekistan, and Azerbaijan, as well as operations in Iraq, Cameroon, Nigeria, and Ghana.

Lukoil is widely recognised as Russia’s most internationally diverse oil producer. In addition to its exploration and production activities abroad, the company operates a network of 5,300 retail fuel stations across 19 countries and runs refineries in Europe.

Last week, the US administration imposed sanctions on Lukoil and state-controlled Rosneft PJSC, targeting Russia’s top two oil producers in an effort to increase pressure on the Vladimir Putin regime over the war in Ukraine. Earlier this month, the UK government also added both companies to its sanctions list.

Lukoil said the divestment and licence extension process is intended to maintain the uninterrupted operation of its international assets while complying with the restrictions. The company’s foreign presence has historically made it more exposed to international sanctions compared with its domestic-focused peers.