Categories: Energy

Russia’s oil firm Lukoil to sell foreign assets to US Carlyle Group

United States private equity firm Carlyle Group has agreed to buy most of Lukoil’s foreign assets, initially valued at $22 billion by analysts.

Lukoil, Russia’s second-largest oil company, is being forced to sell the assets because of U.S. sanctions.

The planned sale, announced by both companies on Thursday, January 29, 2026, comes just as Russian, Ukrainian, and U.S. negotiators try to reach a deal to end the war in Ukraine, and would mark the end, for now, of Lukoil’s attempt to become a global player.

“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,” Carlyle said in a statement.

Lukoil, which also announced the planned sale in a statement, said it was continuing negotiations with other potential buyers.

Oil prices hit 4-month high after Trump’s threats against Iran

Neither Lukoil nor Carlyle gave a price for the sale, which still requires approval from the Office of Foreign Assets Control (OFAC), the U.S. agency which administers sanctions.

The U.S. Treasury had given Lukoil until February 28 to sell its global portfolio.

A person familiar with the situation told Reuters the two groups had not yet agreed on a valuation, which could take some time.

Private equity firms in the energy sector typically hold assets for about five years before trying to sell them on at a profit.

Lukoil did not reply to a request for further comment on the possible transaction.

The Star

Segun Ojo

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