Main points
- Russia's Lukoil suffered a net loss of 1.06 trillion rubles in 2025 due to sanctions.
- The US has extended the deadline for potential buyers of Lukoil's assets by $22 billion to April 1 to facilitate negotiations.
Russian oil giant in crisis / Getty Images
Russia's Lukoil is suffering from sanctions against Russia while its assets are being sold. The company is already counting trillions in losses, despite huge profits in 2024.
What are Lukoil's losses?
Russian oil giant Lukoil's net loss amounted to 1.06 trillion rubles (about $12.5 billion) against a profit of $851.5 billion in 2024, Russia's Interfax reports.
Lukoil's revenue in 2025 decreased by 15% to 3.768 trillion rubles compared to 2024. Also, at the end of 2025, Lukoil recognized a loss from the depreciation of fixed assets in the amount of 204 billion rubles, including 203.5 billion related to exploration and production assets in Russia.
How is the US pressuring Russia over the sale of Lukoil assets?
At the end of February, the Office of Foreign Assets Control of the US Treasury Department extended the deadline for concluding deals until April 1, as reported by Reuters.
Representatives from the U.S., Russian and Ukrainian governments have failed to make a breakthrough in recent weeks in talks on a peace deal. The discussions also included U.S. sanctions on Russia's largest oil producer, state-owned Rosneft, and its second-largest producer, Lukoil, according to three sources.
The Treasury Department's Office of Foreign Assets Control has already extended the deadline for potential buyers three times to negotiate with Lukoil for assets worth $22 billion.
The US representative stated that the Treasury Department extended the deadline in order to:
- to facilitate ongoing negotiations with Lukoil;
- “to reach an agreement that supports Donald Trump's efforts to deprive Russia of the revenues needed to fund its war machine and achieve peace.”
According to the official, any deal would require Lukoil to receive no upfront payment, and all proceeds from the sale would be placed in an account where they would be frozen and under US jurisdiction.
What is happening to world oil prices?
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Rising oil prices will temporarily improve Russia's financial situation, but will not save its economy from inevitable collapse. The additional revenues will be spent in a few places, but will not significantly strengthen Putin's regime.
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The US is planning to lift sanctions on Iranian oil to contain rising global oil prices. Washington is also considering lifting restrictions on Venezuelan oil to boost production.
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Oil and natural gas prices have surged due to attacks in the Persian Gulf that threaten energy infrastructure. Attacks on energy facilities in the region could lead to serious supply disruptions and increase prices on the global market.