Russian energy giant Lukoil has decided to officially cease its international operations. It is important to understand that this decision was made after the US president imposed tough sanctions on the company.
Points of attention
- Hungary's stance on Russian oil and gas amid the sanctions adds complexity to the situation, with efforts to circumvent the sanctions being made by Viktor Orban's team.
- The sale of European businesses by Lukoil and other affected companies could have legal implications for any firm continuing to do business with them, reshaping the energy market dynamics.
Lukoil is already feeling the first effects of American sanctions
The Russian company officially admitted that the process of finding buyers for its foreign assets has already started.
In connection with the introduction of restrictive measures against the company and its subsidiaries by certain states, the company announces its intention to sell its international assets. Consideration of offers from potential buyers has already begun, the official statement says.
It is also worth noting that the US Office of Foreign Assets Control has set a deadline for Lukoil until November 21.
During this time, he is forced to cease his activities abroad, otherwise he faces significant fines.
The company has officially confirmed that it intends to comply with the requirements and, if necessary, will request a minor postponement to complete the sale.
The sanctions mean that the companies affected will have to sell their European businesses and stop supplying oil to their buyers on the continent, opening up the prospect of legal sanctions for any firm that continues to do business with them.
What is important to understand is that Rosneft and Lukoil account for about 66% of the 4.4 million barrels of oil that Russia exports daily.
