* Lukoil sees limited access to funds
* Says to focus on projects in Russia, sell assets in
(Adds detail, quotes)
By Alexei Anishchuk
MOSCOW, July 31 The head of Russia's second
largest oil producer Lukoil said on Thursday that
Western sanctions on Russia would force the company to reduce
its investment programme due to limited access to funds.
Vagit Alekperov also said Lukoil was looking to sell some of
its assets in eastern Europe in order "to focus on Russian
Lukoil, where Alekperov is one of the key shareholders, is
not subject to sanctions over Moscow's role in Ukraine's crisis.
However, he said that the company is reviewing its development
programme to adjust to the broader punitive measures.
"We are looking into several options, and, of course, the
fact that the access to financing would be hampered, would
(lead) to cuts in our costs and investment programmes," he told
"The sanctions are related to the country, we are a Russian
company. This will impact us, just like everyone else."
Lukoil had earmarked $20 billion in investments for this
year, with the bulk of spending set to go to the huge West
Qurna-2 field in Iraq. The company is also set to start
production from an offshore field in the Caspian Sea next year.
EASTERN EUROPE SALE
Lukoil expanded aggressively abroad in recent years to
offset oil production declines in Russia where its fields become
It also recently acquired several producing assets in Russia
and is focusing on domestic projects.
As part of that, Lukoil also sold petrol station in Ukraine,
where pro-Moscow rebels are fighting against the government
forces in the east of the country.
Alekperov said that Lukoil may sell some assets in Eastern
Europe as well, but declined to elaborate.
The company operates oil refineries in Bulgaria and Romania.
"We are optimising our asset portfolio. Today, the company
is focusing on Russian projects," Lukoil's head said.
(Reporting by Alexei Anishchuk; Writing by Vladimir Soldatkin;
Editing by Maria Kiselyova/Jeremy Gaunt)