Two major US players, Chevron and Quantum Capital Group, are preparing to acquire the overseas holdings of Russian oil giant Lukoil, according to reporting by the Financial Times. The move comes as part of Washington’s broader effort to exert pressure on Moscow following its invasion of Ukraine, with Lukoil forced to divest $22 billion worth of international assets under US sanctions imposed last October. Any transaction requires approval from the Treasury Department, which has extended the clearance period for negotiations until January 17.
The portfolio up for sale is extensive, encompassing three European refineries, stakes in oil and gas fields in Iraq, Kazakhstan, several African nations, and Mexico, as well as a retail network of more than 2,000 fuel stations worldwide. A senior US official told the Financial Times that the aim is to ensure that ownership of the assets passes into “the hands of an American owner and operator ad infinitum,” signalling strong government support for a domestic takeover.
Other companies reportedly interested in Lukoil’s international portfolio include ExxonMobil, the Hungarian firm MOL, the Emirati International Holding Company, private equity firm Carlyle, and Saudi Arabia’s Midad Energy. A previous bid by Swiss-based trader Gunvor collapsed in November after the US Treasury cited alleged Kremlin ties, demonstrating the political sensitivities surrounding the sale.
The Kremlin has condemned Western sanctions as politically motivated and illegal. Following the failed Gunvor transaction, spokesman Dmitry Peskov described the restrictions as “unacceptable” and harmful to international trade. Despite these objections, the US-backed bid from Chevron and Quantum reflects a growing trend of American firms and investors capitalizing on opportunities created by sanctions and geopolitical tensions.
Chevron itself brings a complex history to the proposed acquisition. The company has long been embroiled in legal battles over environmental damage, notably a $9.5 billion judgment stemming from Texaco’s operations in the Ecuadorian Amazon. Its broader environmental record has also attracted criticism, including allegations of greenwashing and operational incidents globally. The purchase of Lukoil’s assets would mark a major expansion for the firm, while raising questions about how it balances growth in global energy markets with scrutiny over environmental and social governance.
