‘Restrictive measures’: Hit by US sanctions, Russia’s Lukoil to sell overseas assets; why was it targeted?

Russian petroleum giant Lukoil announced on Monday evening that it will divest its international operations following US sanctions imposed in connection with Moscow’s actions in Ukraine.

“Owing to the introduction of restrictive measures against the company and its subsidiaries by some states, the company announces its intention to sell its international assets,” Lukoil said in a statement, as quoted by AFP, adding that the sale process has already begun.


The Trump administration last week rolled out its first major sanctions against Russia, targeting Lukoil and Rosneft, citing the country’s ongoing military operations against Ukraine.

The sanctions freeze all US-based assets of Rosneft and Lukoil and bar American firms from doing business with them. Together, the two companies account for around 55 per cent of Russia’s petroleum production and have been added to the SDN (Specially Designated Nationals) list, which many countries and corporations follow.

Washington has given companies till November 21 (approx 30 days) to sever ties with the sanctioned entities or risk secondary sanctions, which could restrict access to American banking, trade, shipping and insurance services.

Despite several diplomatic efforts this year — including the first direct talks between Russia and Ukraine in over three years — peace negotiations remain stalled. President Trump cancelled a planned meeting with Russian President Vladimir Putin before implementing the sanctions. Putin termed the measures “serious” but said they would not cripple Russia’s economy, already under multiple restrictions, becoming the most sanctioned nation in the world.