Kazakhstan’s authorities are assessing how to handle Russian oil producer Lukoil’s stakes in local projects, with a decision expected soon, according to Aidar Ryskulov, chairman of the sovereign wealth fund Samruk Kazyna.

• Lukoil Sale: On Monday, Lukoil announced it would sell its international assets following U.S. sanctions over Russia’s actions in Ukraine.
• Impact Assessment: Ryskulov said, “The sanctions are being studied and their impact on companies and the economy remains to be fully assessed,” adding that a decision is likely by the end of this week.
• Strategic Stakes: Lukoil holds positions in Kazakhstan’s Tengiz and Karachaganak oil fields and in the Caspian Pipeline Consortium, which transports Kazakh oil to Russia’s Novorossiisk port for export.
• Significance: The sale represents the most consequential move by a Russian company following Western sanctions imposed after Russia’s invasion of Ukraine in February 2022.

Kazakhstan’s decision will be closely watched, given Lukoil’s strategic role in the country’s energy sector and the broader regional implications of Western sanctions.