Lukoil announced a net loss of 1.059 trillion rubles for 2025 due to the write-off of lost foreign assets, a stark contrast to the previous year's profits.
On March 20, Lukoil revealed its financial results for 2025, reporting a staggering net loss of 1.059 trillion rubles (approximately 40.1 billion zล). This loss was attributed to the write-off of foreign assets as the company struggled after losing control over Lukoil International GmbH. In 2024, Lukoil had posted a net profit of around 852 billion rubles, indicating a dramatic reversal in the company's financial health due to recent geopolitical tensions and sanctions.
The company indicated that the cessation of its foreign operations directly impacted their bottom line. The report disclosed that after losing control over its foreign subsidiary, the investment was fully written down, leading to impairment losses of 1.667 trillion rubles for the fiscal year 2025. While there was a slight profit from domestic activities amounting to 96.652 billion rubles, this was a significant drop from the 794.4 billion rubles reported in 2024, reflecting the overall struggles of the company.
Furthermore, operating profit halved, falling to 526.6 billion rubles from over 1 trillion in the previous year. This situation illustrates not only the immediate financial blow to Lukoil but also the broader implications of US sanctions and the geopolitical climate affecting Russian companies. The extension of sanctions until January 17, 2026, as noted by the White House, could suggest that Lukoil and similar firms will continue to face challenges in recovering foreign investments and stabilizing their financial standings in the near future.
