Investment banker Evgeny Kogan assessed the prospects for the sale of Lukoil's foreign assets
Quick Look
- Investment banker Evgeny Kogan commented on the possible sale of Lukoil's foreign assets in the context of negotiations between the Russian Federation and the United States.
- The main problem is obtaining proceeds due to sanctions restrictions and possible discounts in the transaction.
AI-generated summary
Why It Matters
Lukoil wrote off international assets by 1.66 trillion rubles in 2025. The transaction for the sale of assets is being discussed within the framework of negotiations between the Russian Federation and the United States.
The sale of Lukoil's foreign assets, which is allegedly being discussed during negotiations between representatives of Russia and the United States regarding the settlement of the Ukrainian conflict, is quite possible, but the main question, including for shareholders of the Russian oil company, is how it will manage to receive the proceeds. Investment banker Evgeniy Kogan writes about this when assessing the consequences of a potential transaction.
“The sale case is still going on. Throughout the year, several potential buyers were named, but the matter did not come to specifics,” he recalled, clarifying that Lukoil, in its report for 2025, reflected a complete write-off of international assets in the amount of 1.66 trillion rubles. At the same time, it was indicated that in the event of a successful sale, the money “will most likely be transferred to a special account, withdrawal from which is impossible without lifting the sanctions” that became the reason for the negotiations on the deal.
“They might sell it, but how can they get money while being under restrictions?” — the analyst asked, pointing out that Lukoil “assumes that in the future, with the normalization of all processes, it will be able to restore PART of the written-off investments.” “It’s too early to estimate, but there is a very high probability that discounts will be applied (on the sale),” he believes.
The New York Times wrote that the discussions between Washington and Moscow also concern a “multi-billion-dollar oil deal” related to Lukoil.
Earlier, the media reported that the deal with the foreign assets of the Russian company, which are also claimed by the American private investment group Carlyle, is still in a suspended state due to the fact that it cannot be agreed upon in the White House.
At the time of writing, Lukoil shares were growing by 2.33 percent during the trading day, to 5,554 rubles per share, and over the past three months - by 27.5 percent.
Open Questions
- How will funds from sales under sanctions be received?
- Who will be the final buyer of the assets?
