UAE’s IHC eyes overseas operations of Russia’s Lukoil amid US sanctions

Dubai: Abu Dhabi heavyweight International Holding Company (IHC) says it is assessing a possible purchase of overseas assets owned by Lukoil, Russia’s second-largest oil company, and has notified the U.S. Treasury of its interest.

The move places the UAE’s largest listed conglomerate among several groups assessing assets that the Russian producer is attempting to divest under tightening U.S. sanctions.

IHC’s confirmation follows reports from Reuters and later Bloomberg that identified the conglomerate as one of the parties reviewing Lukoil’s global portfolio. U.S. oil majors ExxonMobil and Chevron, along with private-equity firm Carlyle, are also in discussions.

Washington previously ruled out Swiss trader Gunvor as a buyer, leaving the field open to other suitors ahead of a December 13 deadline for preliminary engagement with Lukoil. Any transaction will require U.S. sign-off.

Lukoil has been hit by sanctions introduced last month on both it and Rosneft. Those measures have increasingly disrupted the group’s foreign operations, which account for roughly 0.5% of global oil output.

The assets include three European refineries, stakes in oilfields across the Middle East, Central Asia, Africa and Latin America, and large retail-fuel networks in multiple markets, including the United States.

IHC did not provide further detail on which assets it is evaluating. The company spans healthcare, energy, real estate, agriculture and mining, and has investments across the U.S., India, Latin America and Africa.

IHC recently announced plans to merge its flagship portfolio companies, 2PointZero, Multiply Group, and Ghitha Holding, into a next-generation listed investment powerhouse valued at approximately Dh120 billion.