Russian Lukoil to exit Georgian market following US sanctions

Russia-based oil giant Lukoil has announced its decision to withdraw Lukoil Georgia from the Georgian market. The move comes in the wake of recently imposed US sanctions targeting the company.

In an official statement, Lukoil said that both the company and its subsidiaries have been affected by the restrictions, prompting the decision to sell its international assets. The process of evaluating potential buyers is currently underway, Caliber.Az reports, citing Georgian media.

Several local operators, including SOCAR and Wissol, may express interest in acquiring Lukoil Georgia’s infrastructure. The Austria-based LUKOIL International GmbH, which owns 100% of Lukoil Georgia, is also included in the sanctions. This Austrian entity is fully owned by Russia’s Lukoil.

Lukoil Georgia currently operates 24 company-owned, 26 leased, and 10 franchised gas stations across all regions of the country.

The move follows the US Department of the Treasury’s October 22 announcement, which added Russia’s major oil companies, Rosneft and Lukoil, along with their subsidiaries, to its sanctions list.

By Vafa Guliyeva