Kazakhstan is assessing how to respond to Russian oil producer Lukoil's significant stakes in the nation's energy infrastructure, including the critical Caspian Pipeline Consortium (CPC), after the company announced plans to sell assets following new U.S. sanctions.

A decision on the matter is expected soon, Aidar Ryskulov, the chairman of Kazakhstan's sovereign wealth fund Samruk Kazyna, said on Tuesday, October 28.

The evaluation follows Lukoil's announcement on Monday that it would sell its international assets. The move is a direct response to sanctions announced by the United States last week regarding Russia's ongoing war in Ukraine.

"The sanctions are being studied and their impact on companies and the economy remains to be fully assessed," Ryskulov told reporters in Astana. "I think we will take (a decision) in the near future, by the end of this week."

Lukoil's planned divestment is the most consequential action by a major Russian corporation in reaction to Western sanctions imposed since the conflict began in February 2022.

The Russian oil major is a key stakeholder in the Caspian Pipeline Consortium, the primary export route for Kazakhstan's oil. The pipeline transports crude from Kazakhstan's major western fields to Russia's Black Sea port of Novorossiisk for shipment to global markets.

Lukoil also holds stakes in Kazakhstan's giant Tengiz and Karachaganak oil fields, which supply the pipeline. The Kazakh government must now determine how to manage the potential exit of a key partner from its most vital economic infrastructure.