Carlyle Group confirmed its agreement to buy most of Lukoil PJSC's foreign assets has terminated, with the deal expiring over summer after initial agreement at the start of the year. Carlyle isn't actively pursuing the assets following the expiration. Earlier, Lukoil International GmbH, a unit of the sanctioned Russian company, stated in its annual report that the US Office of Foreign Assets Control (OFAC) did not approve the January deal, causing it to lapse at the end of July.
Russia's second-largest oil producer decided to sell foreign operations nearly a year ago after US sanctions on Lukoil and peer Rosneft PJSC aimed to pressure the Kremlin over Ukraine. Lukoil, Russia's most diverse major oil company, holds European refineries, oil fields from Iraq to Kazakhstan, and a global fuel station network. The firm initially agreed to sell to energy trader Gunvor Group (now Centalion Group Ltd.), but that deal collapsed.
Three months later, Carlyle stepped in, though the transaction required regulatory approvals and Lukoil continued talks with other buyers. OFAC did not respond to Bloomberg's comment request. The New York Times reported an investor group led by American billionaire Todd Boehly was in talks for a stake in Lukoil's foreign assets, with most ownership going to Middle Eastern investors tied to Abu Dhabi's royal family and Qatari brothers linked to Jared Kushner and Ivanka Trump.
The US International Development Finance Corporation would receive a roughly 15% stake without upfront cash, giving US interests board control while Middle East investors hold over half the equity.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing