Carlyle Group Agrees to Purchase Majority of Lukoil Foreign Assets Under U.S. Sanctions
The Carlyle Group has agreed to buy most of Lukoil's foreign assets to meet a U.S. divestment deadline. The deal requires regulatory approval and blocked proceeds.
Insights:
The Carlyle Group Inc. and PJSC LUKOIL announced a planned sale on Thursday under which the global investment firm agreed to purchase the majority of the foreign assets held by the Russian energy company. These assets, which are to be held under LUKOIL International GmbH, are being sold as PJSC LUKOILnavigates mounting pressure from the United States 
US. The divestment is being pursued due to a mandate from the U.S. Treasury, which has given PJSC LUKOILuntil February 28 to sell its global portfolio. While analysts initially valued the international assets at $22 billion, both The Carlyle Group Inc.and PJSC LUKOIL have not yet agreed on a final valuation, and no official sale price was provided.
US. The divestment is being pursued due to a mandate from the U.S. Treasury, which has given PJSC LUKOILuntil February 28 to sell its global portfolio. While analysts initially valued the international assets at $22 billion, both The Carlyle Group Inc.and PJSC LUKOIL have not yet agreed on a final valuation, and no official sale price was provided.The proposed transaction is subject to strict regulatory conditions and requires formal approval from the Office of Foreign Assets Control (OFAC). According to a person familiar with the situation, the agreement is not exclusive, and PJSC LUKOILstated it is continuing negotiations with other potential buyers while awaiting necessary approvals from the United States. The Office of Foreign Assets Control (OFAC) has indicated that any proceeds from the sale should be blocked and placed in an account subject to the jurisdiction of the United Statesuntil sanctions on PJSC LUKOILare lifted. Furthermore, the agency has expressed a desire to review any future onward sale of the international assets included in this deal.
