LUKFY - Lukoil's global trading arm cuts operations following sanctions - Reuters

The Swiss trading arm of Russia's Lukoil (OTCPK:LUKOY) has scaled back operations after the oil company cut its supply of capital in order to guarantee ~$1B in margin calls in the wake of Western sanctions, Reuters reports. Traders say Litasco, which was handling more than 3.6M bbl/day, was told to stop hedging crude oil in an effort to preserve cash and is now focusing on sending crude to Lukoil's European refineries and selling refined products, according to the report. Russian companies and major buyers of Russian oil have been unable to open letters of credit from Western banks to cover purchases, and energy firms, shippers and trading houses have self-imposed restrictions on trading with Russian groups on fears that future sanctions could be enacted without warning. Lukoil owns four refineries in Russia and three other refineries in Italy, Romania and Bulgaria, and has a 45% stake in a refinery in

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Lukoil's global trading arm cuts operations following sanctions - Reuters