Lukoil Reports $19.8 Billion Impairment Loss on Foreign Assets

Russian energy giant Lukoil PJSC completely wrote off its investments in foreign assets after the US blacklisted the company.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Russian energy giant Lukoil PJSC completely wrote off its investments in foreign assets after the US blacklisted the company.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Russia’s No. 2 oil producer recognized 1.67 trillion rubles ($19.8 billion) in impairments for last year after losing control of its international businesses, it said in a financial report Friday. That led to a net loss of 1.06 trillion rubles, compared with a profit a year earlier.The US slapped sanctions on Lukoil and peer Rosneft PJSC in a bid to pressure the Kremlin to end its war in Ukraine. The move sent shockwaves across countries where Lukoil operates and forced the producer — the most internationally diverse of Russia’s large oil companies — to offer its overseas businesses for sale. Lukoil has stakes in refineries in Europe, significant holdings in oil fields from Iraq to Kazakhstan, and a network of 5,300 fuel stations in 20 countries, including the US.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.In January, the company agreed to sell most of its international assets to private equity firm Carlyle Group after a deal with Gunvor Group collapsed. The transaction is subject to regulatory approvals and Lukoil is in talks with other potential buyers.The sale “entirely” depends on the decision of the US Office of Foreign Assets Control, the company said in the report. If it’s approved, the proceeds are “highly likely to be deposited in a special account, the withdrawal from which will be possible only after the sanctions are lifted,” it said.Results from its assets abroad were reflected in the report as discontinued operations. Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.