Lukoil reported a net loss of 1.06 trillion roubles ($12.8 billion) for 2025 after writing off $20 billion of foreign assets affected by US sanctions, with the company valuing Lukoil International at “close to zero”.
The Russian producer said revenue from continued operations fell to 3.77 trillion roubles in 2025 from 4.4 trillion roubles in 2024. Excluding the impairment and the contribution from Lukoil International, net profit from continued operations was 97 billion roubles last year, down from 794 billion roubles in 2024.
Under IFRS, Lukoil said it excluded the financial results of Lukoil International from its consolidated accounts. The Austria-registered subsidiary holds most of the group’s upstream and downstream assets outside Russia. The company said it could no longer include the unit’s performance because it no longer directs its activities and has no rights to returns or dividends from it.
Lukoil said US sanctions imposed by the Treasury Department’s Office of Foreign Assets Control in October effectively paralysed its international portfolio. It added that even if OFAC approves the proposed sale of most international assets to Carlyle Group, the proceeds would likely be placed in an escrow account and remain frozen until sanctions are lifted.
The company said the timing of any sanctions relief remains highly uncertain. OFAC’s current deadline to complete the proposed transaction with Carlyle Group is 1 April.
Lukoil signed the sale agreement in January. Despite the write-down, the company said it still holds interests in certain international assets, including Kazakhstan’s Tengiz oilfield, led by Chevron, and the Caspian Pipeline Consortium.
