US investment firm Carlyle eyes sanctioned overseas assets of Russia’s Lukoil

American investment fund Carlyle is reportedly considering the acquisition of the sanctioned overseas assets of Russian oil company Lukoil.

Three sources familiar with the matter told the Reuters news agency that the investment giant is evaluating this option.

According to the sources, Carlyle is in the early stages of reviewing the file. The company plans to apply for a license in the US to complete the potential deal and conduct a comprehensive due diligence on the assets.

Talks are still in the preliminary stage

One of the sources stated that Carlyle has communicated its interest to Lukoil.

However, the same source emphasized that the company has not yet made a final decision and that there is a possibility it may withdraw from the acquisition process.

Washington’s sanctions are in effect

The Washington administration had previously imposed sanctions on Lukoil as part of its efforts to increase pressure on Moscow to end the war in Ukraine.

The US also blocked the company from selling some of its international assets to the Swiss trading firm Gunvor, which is linked to Gennady Timchenko, considered a close associate of President Vladimir Putin.

A $22 billion global portfolio

Lukoil, which accounts for approximately 2% of global oil production, has significant production capacity both in Russia and abroad.

The company had announced some time ago that it was seeking a buyer for its international assets, which supply more than 0.5% of the world’s oil. The value of these assets is estimated to be around $22 billion as of 2024.

Reuters notes that for decades, Lukoil has been the most effective Russian oil actor abroad, reflecting Moscow’s “soft economic power.”

According to the agency’s data, Lukoil has three refineries in Europe. The company also holds stakes in fields in Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt, and Nigeria.

In addition, the company operates hundreds of fuel stations worldwide, including in the United States.

Carlyle Group is one of the world’s largest

Carlyle Group, which operates in direct investments, asset management, and financial services, is considered one of the largest entities in the world.

The total value of assets under the company’s management is reported to be at the level of $474 billion.