Page 4 - EurOil Week 04 2023

EurOil COMMENTARY EurOil

Lukoil avoids Western sanctions

wrath

Lukoil has not suffered the same difficulties as its Russian state peers

Gazprom and Rosneft.

RUSSIA WHILE many Russian energy companies have “Calling for the soonest termination of the
been hit hard by fallout from the war in Ukraine, armed conflict, we express our sincere empathy
WHAT: the country’s second biggest oil producer Lukoil for all victims who are affected by this tragedy,”
Lukoil has not been has remained relatively unscathed. the board said. “We strongly support a lasting
targeted by Western The EU debates internally sanctions against ceasefire and a settlement of problems through
sanctions to the same the major Russian energy companies but “cur- serious negotiations and diplomacy.”
extent as its Russian rently, we do not have such debates” about However, while Lukoil has less close ties with
peers. Lukoil, an EU diplomat told Politico last week. the Kremlin than its state-owned rivals Rosneft
The Russian company retains a strong lobbying and Gazprom, the company can hardly be con-
WHY: network in Europe, Martin Vladimirov, a sen- sidered in opposition to Moscow policy. In May,
The company is ior energy researcher at Bulgaria’s Centre for the a month after stepping down as Lukoil’s CEO, its
somewhat more distant Study of Democracy think-tank, told the news founder Vagit Alekperov received an Order of
from the Russian state, agency. Merit to the Fatherland from Russian President
and it has a good “They have convinced European policymak- Vladimir Putin.
lobbying network in ers that Lukoil is supporting Ukraine and the Still, the company has not attracted the same
Brussels. management of Lukoil is against the war.” sanctions pressure from the West as other Rus-
It is true that Lukoil was the only Russian sian majors. Neither Alekperov nor Lukoil are
WHAT NEXT: energy company to post a statement calling for subject to EU sanctions, although the company
Lukoil’s fuel and refining an end to the conflict in Ukraine. Its board called has been under US sanctions since 2014 – the
operations in Europe in early March for there to be peace in Ukraine year when Moscow annexed Crimea and began
could face headwinds in as soon as possible, while stopping short of con- supporting rebel action in the eastern Donbas
the future. demning Moscow’s actions. area.

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