Russia’s second-largest oil producer Lukoil reached a tentative agreement on Thursday to sell the majority of its international assets to U.S. private equity firm Carlyle Group, as Western sanctions continue to push Russian energy companies to sell off their assets abroad.

Sanctions Pressure Drives Asset Sales

The companies did not disclose the value of the potential deal, which includes Lukoil’s oil and gas fields from Iraq to Mexico, thousands of petrol stations in 20 countries, and refineries in Bulgaria and Romania.

But the deal will not include Lukoil's interests in Kazakhstan. The company had previously stated the book value of its entire international business as $22 billion.

On Wednesday, Kazakhstan separately submitted a bid to U.S. authorities to acquire Russian oil producers’ stakes in the country's energy projects.

The Race Isn’t Over: Approvals Pending, Rivals Waiting

The negotiations became feasible in November when the U.S. Treasury Department authorized potential buyers to engage with Lukoil for the purchase of its foreign assets, which account for about 0.5% of global oil production.

Analysts say Lukoil's oil and gas output from its overseas operations is still expected to rise through the end of the decade, according to S&P Global, despite the asset sale.

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