Russia’s energy company Lukoil has confirmed that it has accepted an offer from Swiss-based Gunvor Group to acquire Lukoil International, the wholly owned subsidiary that holds the firm’s overseas assets. The sale process was triggered by restrictive measures imposed by certain states, including U.S. sanctions introduced earlier in October.

Lukoil stated that the key terms of the proposed transaction have already been agreed, and by accepting Gunvor’s offer, it has committed not to negotiate with any other potential buyers. The financial terms of the offer have not been disclosed.

According to the company, the completion of a binding agreement remains subject to regulatory conditions, including authorization from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and the acquisition of necessary licenses and permits in relevant jurisdictions.

An existing OFAC wind-down license currently allows Lukoil to maintain operations of its foreign assets while facilitating the divestment process. The parties intend to seek an extension of this license, along with any additional approvals required to ensure uninterrupted banking and operational activities until the transaction is finalized.

Through its international subsidiary, Lukoil manages significant upstream exploration and production (E&P) projects in Azerbaijan, Iraq, and Kazakhstan, among other countries.

This divestment follows an earlier transaction in which a Lukoil subsidiary reached an agreement with OMV to sell its interest in a sour-gas development off the coast of the United Arab Emirates (UAE).