By Adam Whittaker

Russia's Lukoil said it reached a conditional deal to sell its international assets to U.S. private-equity firm Carlyle Group, kicking off what is likely to be a complex process for the transaction to go ahead.

The deal with Carlyle comes weeks after the Trump administration blocked a previous agreement under which the sanctioned oil producer would have sold the assets to commodities trader Gunvor. Lukoil said Thursday that it was still in talks with other potential buyers.

Lukoil moved to sell the assets after President Trump imposed sanctions on it and peer Rosneft in October in a bid to thwart a key source of revenue for Russia's war efforts in Ukraine as peace talks stalled.

There is no guarantee that a deal will take place and the initial agreement is the first step in a process which is highly contingent on regulatory approvals. It is also reliant on Carlyle's own due diligence, the company said.

The transaction will require approval by the U.S. Treasury's Office of Foreign Assets Control, the companies said. The deal has been structured to be fully compliant with the policies of the department, Carlyle said.

No sale price was disclosed. The Wall Street Journal in November reported that individuals following the Gunvor sale process had suggested it could value Lukoil's international arm at around $20 billion. But Gunvor retracted its offer for the assets in November after the U.S. Treasury Department voiced its opposition to the deal and called the Swiss commodities trader a "Kremlin's puppet."

Under the latest deal, Carlyle would gain control of a portfolio of upstream assets across more than 30 countries, but the sale would exclude Lukoil's assets in Kazakhstan. It would encompass refineries and gas stations around the world, including the U.S.

Assets that would be part of the deal include major projects in Egypt, Azerbaijan and Uzbekistan, as well as Lukoil's 75% stake in the West Qurna 2 oil project in Iraq. The field is one of the world's largest and produces hundreds of thousands of barrels a day.

Carlyle, which has $474 billion assets under management, already has oil and gas investments including in Swiss refiner Varo Energy. The group has roughly $20 billion assets under management across the energy, renewable and infrastructure sectors.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

January 29, 2026 04:25 ET (09:25 GMT)

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