Will Lukoil sell foreign assets to American companies

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented live on the RBC radio station on the current state and prospects of negotiations on the LUKOIL's foreign assets sale.

Alexey Belogoryev notes that the direct benefit for Lukoil is not obvious, since the proceeds are likely to be frozen, and the structure of the transaction and the valuation of assets remain uncertain.

According to the expert, the rejection of the deal may lead to external management or nationalization of assets in a number of countries, but this opens the way to lengthy international arbitrations and possible compensation at market value. Chevron and ExxonMobil are considered potential buyers, as they are primarily interested in assets in Iraq. The total value of the whole package is estimated by the market in the range of $10-22 billion. The discount on the sale can reach a third of the market price.