Russia’s second-largest oil producer Lukoil said on Friday it has been in talks with potential buyers of its foreign assets following last-month sanctions from the UK and the United States and as a deal with Gunvor trading house collapsed.

“The specific deal will be announced after the final agreements have been reached and the necessary regulatory approvals have been obtained,” it said.

“The company aims to ensure uninterrupted operations of assets during their sale and transfer to new owners. This will avoid the risks of disruptions in the work and supply of energy resources to the countries of presence, and save jobs,” it added.

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) last month announced new sanctions targeting Russia’s largest oil producers, Lukoil and Rosneft, ratcheting up the pressure on Russian President Vladimir Putin to end Moscow’s military campaign in Ukraine.

OFAC also issued a general licence that gave companies until November 21 to complete their business deals with Lukoil, including any acquisitions of the Moscow-headquartered oil company’s international assets.

The Russian company had agreed to a sale of its international assets to Swiss commodities trader Gunvor, but that deal collapsed earlier this month after the U.S. Treasury signaled Washington’s opposition to it.
Source: Reuters