Lukoil has confirmed it will sell its international subsidiary, LUKOIL International GmbH, following an offer from Swiss trading company Gunvor Group. The subsidiary holds the Russian company’s assets abroad, and key terms of the deal were already agreed upon by both parties. Lukoil has pledged not to engage with other potential buyers while negotiations proceed.

The finalization of the transaction will depend on Gunvor obtaining approval from the US Office of Foreign Assets Control (OFAC) and securing any additional licenses, permits, or authorizations required in relevant jurisdictions. Both companies have indicated that they may request an extension of the existing OFAC license or other authorizations to ensure uninterrupted operations of LUKOIL International GmbH and its banking services until the sale is completed.

The decision to sell the subsidiary comes in response to sanctions recently imposed on Lukoil and its affiliates by the United States and the United Kingdom. The sanctions were implemented as part of international measures condemning Russia’s military actions in Ukraine. Gunvor, headquartered in Geneva and registered in Cyprus, approached Lukoil with the offer to acquire the company’s foreign assets. Lukoil’s official statement emphasized that the main aspects of the deal had already been settled prior to the announcement.