Lukoil, the largest private oil company in Russia is studying the possibility of selling Litasco, its trading unit in Switzerland, because the new package of sanctions imposed by the US against Russia will make it more difficult to attract new funding, Reuters reported referring to informed sources.
"One of the reasons for the sale is sanctions. And the sale will also allow them to divert a large amount of working capital from trading to mining projects in Russia," a high-ranking source in the industry told the agency. He noted that the sale of Litasco may occur by the end of this year and become the first among other foreign assets, which allows Lukoil to focus on deposits development in Siberia.
The sources did not specify how much money Lukoil could gain by selling Litasco, one of the largest global trading companies in the energy sector. The accounting value of most large trading houses ranges from two to six billion dollars.
Lukoil controls refineries in Romania, Bulgaria, Italy and the Netherlands. The company declined to comment on Reuters' message about the possibility of Litasco selling.