US sanctions push Russian oil giant Lukoil to sell off assets

Russia’s second-largest oil producer on Monday said it decided to sell off assets amid wide-reaching sanctions from the United States.

“The consideration of bids from potential purchasers has been started,” Lukoil wrote in a statement on its website.

The company said it would work to meet the U.S. Office of Foreign Assets Control’s Nov. 21 deadline to divest from business abroad but said it would apply for an extension if needed.

The largest Russian oil producer, Rosneft, has not announced a similar move, but many are looking to see how the fuel giant will handle pressure from the West. 

The Trump administration decided to impose sanctions on Rosneft and Lukoil last week in an effort to pressure Russia to end the war in Ukraine.

“Now is the time to stop the killing and for an immediate ceasefire,” Treasury Secretary Scott Bessent said in a statement.

“Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine,” Bessent said. “Treasury is prepared to take further action if necessary to support President Trump’s effort to end yet another war. We encourage our allies to join us in and adhere to these sanctions.”

India and China, known as some of Russia’s largest purchasers of oil, have pulled back from sales. However, Hungarian Prime Minister Viktor Orbán is expected to visit the U.S. next week with the goal of attaining special permission to continue exporting energy and oil from Moscow.