[Discussion] Proposed Lukoil Asset Deal Enters U.S.-Russia Ukraine Peace Talks

Oil Deal Enters Ukraine Peace Talks

U.S. negotiations with Russia over ending the war in Ukraine have expanded to include a potential multibillion-dollar transaction involving foreign assets owned by Russian energy company Lukoil, according to The New York Times.

The proposed deal covers oil fields, refineries and gas stations around the world. It would require approval from both the U.S. government and the Kremlin, and could involve sanctions relief that would increase the assets’ value.

The group pursuing the transaction reportedly includes U.S. billionaire investor Todd Boehly, two Middle Eastern groups that have conducted business with U.S. envoys Jared Kushner or Steve Witkoff’s family, and an arm of the U.S. government. The White House, U.S. Treasury Department and Lukoil did not respond to requests for comment outside regular business hours.

Proposal Raised in Moscow

Russian President Vladimir Putin raised the prospective transaction during a Sept. 5 Kremlin meeting with Kushner and Witkoff, according to people familiar with the discussion.

Putin presented the deal as a way to demonstrate to Russians that they could still conduct business with the United States. Kushner and Witkoff reportedly said they would work on the proposal as a means of building goodwill with Moscow.

The transaction could also affect oil markets. Global prices have risen following the U.S. war with Iran, and lifting sanctions from some Lukoil assets could potentially increase available supply and reduce prices.

Sanctions and U.S. Policy

Lukoil is Russia’s second-largest oil producer and accounts for approximately 2% of global oil output. The company has been under U.S. sanctions since 2025, when Washington froze its U.S.-based assets and threatened secondary penalties against foreign entities doing business with them.

“Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine,” Treasury Secretary Scott Bessent said when the measures were announced in October 2025.

Those sanctions, the first of their kind imposed by the second Trump administration, were intended to pressure Moscow into peace negotiations by targeting fossil-fuel revenue supporting Russia’s war effort. The U.S. subsequently issued a limited waiver covering some of Lukoil’s foreign assets and extended it earlier this year.

The Senate has also passed legislation intended to make it easier to sanction countries that subsidize Russia’s war economy. The newly reported proposal, however, could remove restrictions from Lukoil assets included in a sale.

Lukoil’s International Holdings

Lukoil owns stakes in oil fields in Kazakhstan, Uzbekistan, the Middle East, Africa and other regions. It also operates three European refineries and hundreds of gas stations worldwide, including in the United States.

In January, Lukoil announced an agreement to sell most of its foreign assets to U.S. investment firm Carlyle. That transaction remains subject to U.S. government approval.

Swiss-based oil trader Gunvor had previously sought to acquire the international holdings but withdrew its bid in November after the Treasury Department described the company as the “Kremlin’s puppet.”

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