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A major Russian oil company has announced plans to sell off its international assets in response to new US sanctions.

Some shit you should know before you dig in: Last week, President Trump announced new sanctions targeting Russia’s energy sector, focusing specifically on the country’s two largest oil producers, Lukoil and Rosneft. The sanctions freeze all US-based assets of the companies, prohibit American businesses from engaging with them, and include the threat of secondary sanctions on foreign financial institutions that facilitate their transactions (effectively isolating them from the global financial system). Trump stated the measures were a direct response to President Putin’s refusal to take meaningful steps toward ending the war in Ukraine, calling the sanctions a necessary move to choke off the Kremlin’s primary source of war funding. The crackdown came as Ukraine intensified its strikes on Russian energy infrastructure, with drone and missile strikes reportedly knocking out roughly 20% of the country’s oil refining capacity in recent months.

What’s going on now: Lukoil has announced it will divest from its entire portfolio of international assets in order to comply with the US sanctions and avoid the threat of secondary sanctions that could cut off access to global markets. The company confirmed that it is operating under a wind-down license issued by the US Treasury’s Office of Foreign Assets Control (OFAC), which gives it until November 21 to complete the sales or face harsh penalties.

In a statement, Lukoil cited the “introduction of restrictive measures against the Company and its subsidiaries by some states” as the reason for its exit, and said it had already begun reviewing bids from potential buyers. It also indicated it may apply for an extension of the wind-down license to ensure uninterrupted operations throughout the transition.

The scope of the sell-off is massive. Lukoil’s international footprint spans 11 countries and includes both upstream production and downstream refining and retail assets. Among the major divestments:

• A 75% stake in Iraq’s West Qurna 2 oil field, one of the world’s largest, producing nearly half a million barrels per day.
• The Neftohim Burgas refinery in Bulgaria, the largest refinery in the Balkans, which supplies a significant portionof the region’s fuel.
• Romania’s Petrotel refinery, another key refining asset in Southeastern Europe.
• Over 600 gas stations in Turkey, acquired in 2008 through a $500 million deal with Akpet.