Full Breakdown
U.S.-Russia Negotiations Expand to Multibillion-Dollar Lukoil Asset Deal
By Drooid · · How we work
Core Event
In early September 2024, senior members of the Trump administration met with Russian President Vladimir V. Putin at the Kremlin. During that September 5 meeting, Putin raised the prospect of completing a multibillion-dollar transaction involving the worldwide portfolio of oil fields, refineries and gas stations owned by Lukoil, Russia’s second-largest energy company. The proposed sale is contingent on approval by both the United States government and the Kremlin and is being pursued by a consortium that includes U.S. investor Todd Boehly, two Middle-Eastern business groups, and a U.S. government arm.
Background & Context
Since Russia’s invasion of Ukraine in February 2022, U.S. sanctions have driven many Russian energy assets to “nearly worthless” valuations, creating a “fire-sale” environment for Lukoil’s foreign holdings. The Trump administration argues that commercial talks with Moscow could generate goodwill and help end the war, a rationale that underpins the push to move the Lukoil transaction forward.
Key Figures & Groups
- Jared Kushner – former senior adviser to President Donald Trump and envoy to Russia.
- Steve Witkoff – real-estate developer and senior U.S. negotiator on the Russia-Ukraine track.
- Todd Boehly – billionaire asset manager and major donor to Trump-aligned political committees.
- Vladimir V. Putin – President of the Russian Federation, who raised the Lukoil deal at the September 5 Kremlin meeting.
- Lukoil – Russian energy giant whose global portfolio is the subject of the proposed sale.
Timeline
- September 5, 2024 – Putin raises the Lukoil deal during a meeting with Kushner and Witkoff at the Kremlin.
- October 3, 2024 – The New York Times reports that negotiations have expanded to include the multibillion-dollar oil deal.
Data & Statistics
- Lukoil’s foreign assets are being offered at “fire-sale prices” because sanctions have sharply reduced their market value.
- Todd Boehly contributed $1 million to the Trump-aligned MAGA Inc. political committee in December 2023, coinciding with the intensification of the Lukoil negotiations.
Official Statements & Responses
Kremlin spokesman Dmitry Peskov emphasized that Russia does not need to wait for a Ukrainian settlement before pursuing joint economic projects, saying, “We believe we don’t have to wait, we could work for our mutual benefit right now.”
A U.S. official described talks with Russian special envoy Kirill Dmitriev as “constructive,” noting a focus on a peaceful resolution and possible post-conflict energy initiatives.
Verbatim Quotes
- “We believe we don’t have to wait, we could work for our mutual benefit right now,” Peskov added.” — Dmitry Peskov, Kremlin spokesman
Why It Matters
If approved, the Lukoil sale could give the United States a channel to engage Russia economically while the war continues, potentially influencing Kremlin calculations. The involvement of individuals with close ties to senior Trump officials raises questions about the separation of private interests from diplomatic negotiations and illustrates how sanctions have reshaped the global energy market, creating opportunities for investors willing to navigate politically sensitive transactions.