Russian oil company Lukoil has accepted an offer from Switzerland-based Gunvor Group to acquire Lukoil International, the subsidiary responsible for Lukoil’s international assets. 

Both companies have already agreed on the principal terms of the transaction, meaning Lukoil would not negotiate with other potential buyers. 

The final agreement will require Gunvor to secure permission from the US Office of Foreign Assets Control (OFAC), along with any other necessary licences, permits and authorisations in relevant jurisdictions. 

Lukoil said the sale is taking place under an OFAC wind-down licence and will seek extensions if needed “to ensure uninterrupted operations of its international assets”. 

The sale is driven by restrictive measures imposed by certain countries on Lukoil and its subsidiaries following sanctions over Russia’s war in Ukraine. 

The planned sale represents the latest step by the Russian company in response to sanctions introduced by Western governments. 

Lukoil recently announced its intention to divest these assets and started reviewing offers from interested parties. 

Gunvor was the world’s largest trader of Russian oil in the 2000s, according to Reuters. 

The company’s former shareholder, who was considered an associate of President Vladimir Putin, sold his stake in Gunvor in the wake of US sanctions over Russia’s invasion of Crimea. 

Gunvor, along with other major trading companies such as Vitol and Trafigura, has expanded its portfolio by acquiring a range of energy assets. 

The company has increased its profits amidst volatility in oil and gas markets since the conflict in Ukraine began, said the news agency. 

Lukoil supplies crude oil to Hungary, Slovakia, and Türkiye’s STAR refinery, which is owned by Azerbaijan’s state-owned oil company SOCAR. 

The company also holds interests in oil terminals and retail fuel networks across Europe, and operates upstream and downstream projects in Central Asia, Africa and Latin America.