Baker Hughes has reached an agreement to divest its Russian oilfield services business (OFS Russia) to its local management team for an undisclosed price.

The deal follows on the American oilfield services provider’s previously announced suspension of new investments in its operations in Russia and commitment to adhere to appliable laws and sanctions.

Baker Hughes said that the divested business will independently operate with an independent brand. The sold business will also assume all the existing Russian assets, liabilities, and commercial obligations of Baker Hughes.

The deal, which is subject to the approval of local authorities, is likely to close in the second half of this year.

  Baker Hughes, Oil and gas industry news, Oil and gas news, Russia