Core Insights - Lukoil has accepted an acquisition offer from Gunvor Group for Lukoil International, which manages Lukoil's international assets, and both companies have agreed on the principal terms of the transaction, preventing Lukoil from negotiating with other buyers [1][3] Group 1: Transaction Details - The final agreement requires Gunvor to obtain permission from the US Office of Foreign Assets Control (OFAC) and other necessary licenses and permits in relevant jurisdictions [2] - The sale is being conducted under an OFAC wind-down license, with Lukoil seeking extensions if necessary to maintain uninterrupted operations of its international assets [2] Group 2: Market Context - The sale is a response to sanctions imposed on Lukoil and its subsidiaries due to Russia's war in Ukraine, marking a strategic move by the company to divest its international assets [3] - Gunvor was the largest trader of Russian oil in the 2000s and has expanded its portfolio by acquiring various energy assets amidst market volatility since the Ukraine conflict began [4] Group 3: Lukoil's Operations - Lukoil supplies crude oil to Hungary, Slovakia, and Türkiye's STAR refinery, which is owned by Azerbaijan's SOCAR, and holds interests in oil terminals and retail fuel networks across Europe [5] - The company operates upstream and downstream projects in Central Asia, Africa, and Latin America, indicating a diverse international presence [5]
Russia’s Lukoil accepts Gunvor bid for international assets