Russian oil company Lukoil is selling all its operations outside its home country, including those in Belgium, to American investment company Carlyle. Last year, the company was subject to American sanctions intended to increase pressure on Russia to end the war in Ukraine.
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US investment company acquires 185 Lukoil petrol stations in Belgium
Colin Clapson
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According to a Lukoil statement, only its operations in Kazakhstan are not included in the deal. This means that the 185 petrol stations in Belgium have also been sold to the American investment company.
The deal is not yet finalised, as the transaction still needs to be approved by the relevant authorities. In the meantime, the Russian company is continuing to talk with other potential buyers.
Lukoil has not disclosed the amount Carlyle is willing to pay.
American sanctions hurt
The American government blacklisted Lukoil last year to increase pressure on Russia to end the war in Ukraine. These sanctions, which were to take effect in April, involve freezing all Lukoil and Rosneft assets in the US and prohibiting all companies from doing business with these Russian oil companies.
The overseas outfits were given two months to sever their ties with Rosneft and Lukoil and their subsidiaries. This led to a problem in countries outside Russia where Lukoil operates.
Lukoil subsequently announced that it would sell its international assets.
"As a result of restrictive measures against the company and its subsidiaries by some states, we are selling international assets. The assessment of bids from potential buyers has begun."
250 petrol stations across the Benelux
According to the Bloomberg news agency, Lukoil is the most internationally diversified of all Russian oil giants, with oil exploration and production in former Soviet republics such as Kazakhstan, Uzbekistan and Azerbaijan.
In the Benelux, there are almost 250 petrol stations and two storage terminals in Neder-over-Heembeek (City of Brussels) and Maastricht (The Netherlands). Lukoil also has a 45 per cent stake in the Zeeland refinery in the port of Flushing (The Netherlands).
In October, the company announced a deal with commodities trader Gunvor. That sale did not go through. The US Treasury Department called the Swiss company ‘a puppet of the Kremlin’. Gunvor's co-founder is known to be a friend of Russian president Putin.