Lukoil reports $12bn loss and says U.K. and U.S. sanctions hit overseas operations

MOSCOW, March 20, 2026 — Lukoil reported a net loss of 1.06 trillion rubles for 2025, reversing from an 848.5 billion ruble profit a year earlier, after sanctions forced the Russian oil producer to write down its overseas business and lose control of key foreign assets. The company’s disclosed consolidated financial statements were approved March 19 and audited by Kept.

The main hit came from discontinued operations. Lukoil said U.S. restrictions and U.K. blocking sanctions imposed in October 2025, cut it off from managing LUKOIL International GmbH and other foreign companies. The group said it lost control of those assets from Nov. 21, 2025, deconsolidated them and valued its remaining investment at approximately zero because any sale outcome depends on OFAC approval and any proceeds would likely be trapped in a restricted account until sanctions are lifted.

Lukoil booked a 1.667 trillion ruble impairment on the investment tied to those overseas assets, contributing to a 1.156 trillion ruble loss from discontinued operations. Revenue from continuing operations fell to 3.77 trillion rubles from 4.42 trillion rubles in 2024, while net profit from continuing operations dropped to 96.7 billion rubles from 794.4 billion rubles. Total assets fell to 5.47 trillion rubles from 9.28 trillion rubles.

The filing also showed pressure on domestic assets. Lukoil recognized 204 billion rubles of fixed-asset impairment in 2025, mostly tied to Russian upstream assets. Even so, the company said it ended the year with cash and cash equivalents of 543.8 billion rubles and long-term debt of 237.1 billion rubles.

For market context, Lukoil had begun seeking buyers for foreign assets after the October 2025 sanctions, with previous reports naming Carlyle and, later, Saudi Arabia’s Midad Energy as potential acquirers.