LUKOIL PJSC: Recent Developments in Ownership, Sanctions, and Operational Oversight

Acquisition Interest from Saudi‑Backed Midad Energy

In mid‑February 2026, multiple reports confirmed that Midad Energy, a Saudi‑backed company, signed a term sheet to acquire all of LUKOIL’s foreign‑operated assets. The transaction is subject to regulatory approval and will involve the transfer of assets that are currently under sanctions. Reuters and other outlets noted that the deal represents a significant move to secure sanctioned Russian assets amid ongoing geopolitical tensions.

Government‑Led Oversight of LUKOIL’s Russian Operations

According to a Romanian news source, the government is preparing to impose extended supervision over LUKOIL’s refinery and its 300 petrol stations across Russia. The plan is scheduled to take effect within two weeks prior to the imposition of U.S. sanctions. The oversight is intended to ensure compliance with new regulatory frameworks and to monitor the company’s compliance with international sanctions regimes.

Ukrainian Military Activity Targeting LUKOIL Facilities

Ukrainian forces have reportedly targeted a LUKOIL refinery located in the Komi Oblast of Russia, as reported by German and Ukrainian outlets. The refinery, part of LUKOIL’s core production network in Western Siberia, is a key node in the company’s refining and distribution chain. The attacks are part of broader Ukrainian efforts to disrupt Russian energy infrastructure.

Impact of Sanctions on LUKOIL’s International Operations

The United Kingdom has extended the OFSI licence for LUKOIL’s Bulgarian units until August 2026, allowing continued operations under specific conditions. Meanwhile, Russia’s oil revenues have fallen due to sanctions, prompting the Kremlin to increase taxes and borrowing to compensate for reduced export income. These economic pressures are likely to affect LUKOIL’s profitability and its ability to maintain its global supply chain.

Market Context

LUKOIL’s share price, as of 7 February 2026, stood at 5,133.5 RUB, with a market capitalization of 3.37 trillion RUB. The company’s price‑to‑earnings ratio was 6.29, reflecting a relatively low valuation in the current market environment. Its 52‑week high reached 7,784.5 RUB in February 2025, while the 52‑week low was 4,815 RUB in November 2025.

Conclusion

The convergence of a high‑profile acquisition attempt by Midad Energy, intensified governmental oversight, targeted Ukrainian attacks, and the broader sanctions environment underscores the heightened volatility surrounding LUKOIL PJSC. Stakeholders should monitor regulatory developments and operational impacts closely as the company navigates this complex landscape.