Russian Oil Giant Faces Forced Asset Sale Ahead of Sanctions Deadline
The international operations of Russian oil company Lukoil are facing unprecedented pressure as potential buyers circle its foreign assets ahead of US sanctions scheduled to take effect on 21 November. The measures, implemented in response to Russia's ongoing war in Ukraine, have already disrupted Lukoil's operations across multiple countries including Iraq, Finland and Bulgaria.
Global Asset Grab Intensifies
According to multiple sources familiar with the matter, Kazakhstan's state-owned energy firm KazMunayGas is actively studying a bid for Lukoil's assets within its borders. Meanwhile, energy giant Shell has expressed interest in acquiring Lukoil's deepwater assets located in Ghana and Nigeria, though Shell has officially declined to comment on the potential acquisitions.
The government of Moldova has initiated talks to nationalise Lukoil's infrastructure at Chisinau airport, confirmed airport director Serdgiu Spoiala. Similarly, Bulgaria is advancing plans to seize and resell Lukoil's Burgas refinery, despite President Rumen Radev returning the legislation to parliament requesting legal modifications.
In Egypt, where Lukoil holds three significant concessions, the company has indicated to government officials its potential plans to divest from the country entirely. Egypt's petroleum ministry has not responded to requests for comment regarding the situation.
No Good Options for Russian Energy Giant
Sergey Vakulenko, a senior fellow at the Carnegie Russia Eurasia Center and former strategy head at Gazprom Neft, explained Lukoil's difficult position. The company faces two equally challenging scenarios - selling its assets and potentially having the proceeds frozen by Western governments, or refusing to sell and watching foreign states nationalise the properties outright.
Lukoil may attempt to follow the precedent set by Russian oil firm Rosneft, which saw its three German refineries placed under a trusteeship arrangement in 2022. This arrangement allowed Berlin to assume control while Rosneft technically maintained ownership.
A previous attempt by Lukoil to sell foreign assets to Swiss-based oil trader Gunvor collapsed following opposition from the US Treasury, which labelled Gunvor as the Kremlin's puppet organisation.
Ukraine Battlefield Developments
Meanwhile, on the Ukrainian front lines, General Oleksandr Syrskyi reported that Russian forces have overrun three settlements in the Zaporizhzhia region of southern Ukraine. The top military commander stated that dense fog conditions enabled Russian troops to infiltrate Ukrainian positions, with Ukrainian units now engaged in gruelling battles to repel the advance.
The most intense fighting continues around the besieged Ukrainian city of Pokrovsk in the Donetsk region, where nearly half of all frontline clashes occurred during the previous 24-hour period. Increased combat activity has also been reported in the cities of Kupiansk and Lyman within Ukraine's north-eastern Kharkiv region.
In Huliaipole, a Zaporizhzhia settlement where the situation has deteriorated significantly according to General Syrskyi, evacuation efforts continue for remaining civilians. Reuters interviewed 84-year-old Polina Plyushchii as she awaited evacuation, bundled in layers of clothing and clutching her cane. You're in your own house, your own yard - and you can't go out, she lamented, describing how deadly threats including drones have made normal life impossible.
Another evacuee, 55-year-old Zhanna Puzanova, highlighted the dire conditions facing civilians in conflict zones. There's nowhere to buy medicine, there's no water, she explained, noting that both she and her 88-year-old mother suffer from poor health. We can't live like that any longer.
Domestic Political Challenges
Kyiv Mayor Vitaly Klitschko has called for Ukraine to lower its conscription age to bolster fighting numbers. In the past, 18-year-olds served in the army - but those are kids, he remarked during an interview with a media network including Politico. Right now you can only be mobilised in Ukraine from age 25. You could lower it by a year or two - to 23 or 22.
EU Foreign Policy Chief Kaja Kallas described a recent energy corruption scandal in Ukraine as extremely unfortunate, emphasising the importance of Kyiv taking the matter seriously. President Volodymyr Zelenskyy has moved to contain growing public outrage by dismissing two ministers accused of involvement in a large-scale bribery scheme.
Justice Minister Herman Halushchenko and Energy Minister Svitlana Grynchuk have been removed from their positions following the allegations. President Zelenskyy also called for personal sanctions against his former friend and business partner Timur Mindich, identified as the scheme's alleged organiser.
There must be maximum integrity in the energy sector, in absolutely all processes, President Zelenskyy stated. I support every investigation carried out by law enforcement and anti-corruption officials. This is an absolutely clear and consistent position for everyone.
Reports indicate that Mindich fled abroad, possibly to Israel, shortly before investigators arrived at his Kyiv apartment to conduct searches. Sources suggest the former associate had minimal contact with President Zelenskyy since Russia's full-scale invasion began.
