Russian oil giant Lukoil is experiencing its sharpest decline in two and a half years: its shares on the Moscow Exchange have fallen to 4,900 rubles apiece, and its capitalization has decreased by $9.6 billion after new US sanctions imposed on October 23. This is reported by Financial Times, writes UNN.
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Investors fear that the company will suffer significant losses when trying to sell foreign assets.
Sanctions hit Lukoil: Russia loses its main oil asset in Iraq10.11.25, 15:55 • [views_4496]
The sanctions have effectively paralyzed Lukoil's activities in international markets: Iraq does not transfer funds or accept oil from the company; the Teboil gas station network in Finland is out of fuel; Swiss Litasco cannot charter tankers or make payments; India and China refuse to buy oil.
The sale of foreign assets to Swiss Gunvor was blocked by the US Treasury Department, and Lukoil is now preparing for a possible loss of $16 billion in foreign property, the report says.