Lukoil Turmoil: How Trump’s Sanctions Crushed Russia’s Second-Largest Oil Producer

Russia’s Lukoil said Thursday it has accepted an offer from global commodity trader Gunvor to buy its international business after crippling U.S. sanctions forced the oil giant to divest its foreign assets.

The sale marks one of the most significant corporate consequences of Western sanctions since Russia’s 2022 invasion of Ukraine.

Lukoil announced the sale of its foreign assets to the Kremlin-controlled oil trader Gunvor

According to Lukoil’s press release, the company has accepted Gunvor’s offer to purchase LUKOIL International GmbH and has committed not to engage in talks with other potential buyers.… pic.twitter.com/NXutXCxpHi

— Visegrád 24 (@visegrad24) October 30, 2025

Lukoil’s overseas arm, Lukoil International GmbH, controls major assets including Iraq’s West Qurna 2 oil field, Bulgaria’s Neftohim Burgas refinery, and Romania’s Petrotel refinery.

The deal, subject to U.S. Treasury approval, must be completed before the November 21 sanctions deadline.

Russian oil giant Lukoil (under US sanctions) says it has agreed to sell its international business to commodity trader Gunvor for an undisclosed sum.

(Gunvor, of course, was co-founded by an ally of Vladimir Putin, and the company made its early fortunes trading Russian oil) pic.twitter.com/xnivh5tQA2

— Javier Blas (@JavierBlas) October 30, 2025

Gunvor, once co-owned by Putin ally Gennady Timchenko, has capitalized on post-war oil price surges to expand globally.

Lukoil produces about 2% of the world’s oil, and its exit from foreign markets underscores the growing pressure on Russia’s energy sector under President Donald Trump’s tightened sanctions policy.

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