Lukoil reports $12.5B loss as sanctions and write-downs hit results
A Lukoil oil field in Russia (Photo: business-class.su)
Russia’s oil giant Lukoil reported a net loss of 1.06 trillion rubles ($12.5 billion) in 2025 under international financial reporting standards, compared with a profit of 851.5 billion rubles in 2024, Interfax reported.
The results reflect the impact of discontinued operations and significant asset write-downs.
Lukoil’s revenue fell 15% year over year to 3.768 trillion rubles in 2025.
The company fully wrote off its investment in LUKOIL International GmbH, which holds its foreign assets, recording an impairment loss of 1.66 trillion rubles.
By the end of 2025, Lukoil also reported impairment losses on fixed assets totaling 204 billion rubles, including 203.5 billion rubles tied to exploration and production assets in Russia.
Compensation for key management personnel — including board members and top executives — was cut in half last year to 7.469 billion rubles.
The financial results come amid increasing pressure on Russia’s energy sector.
Reuters reported in late February that U.S. authorities have been delaying the sale of Lukoil’s international assets as leverage in negotiations related to the war in Ukraine.
On Feb. 26, the United States extended the deadline for the sale of Lukoil’s foreign assets to April 1, 2026.
Earlier, on Oct. 22, 2025, the United States imposed new sanctions on Russia during President Donald Trump’s second administration. The Office of Foreign Assets Control (OFAC) said the measures were introduced due to “the lack of serious commitment by Russia to the peace process to end the war in Ukraine.” The sanctions targeted major companies, including Rosneft and Lukoil.
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