US and Russia in talks over sale of Lukoil's foreign assets

Talks over sanctioned assets

According to The New York Times, representatives of the US administration and the Kremlin are at the stage of discussing a large-scale oil deal. Its essence is the potential sale of the foreign assets of the Russian company Lukoil, which were frozen following the introduction of US sanctions.

Who could become the buyer

NYT journalists note that among the potential investors who could acquire these assets is a coalition comprising:

• US investor Todd Boehly, known for his closeness to Donald Trump and a $2 million contribution in support of the US president's political initiatives;
• two business groups from the Middle East region that previously collaborated with Jared Kushner or the Witkoff family;
• a separate unit of the United States government.

Context of the Kremlin meeting

The publication reports that the issue of selling the assets was raised during peace negotiations dedicated to the situation in Ukraine. According to sources, Vladimir Putin proposed this idea during a meeting with Steven Witkoff and Jared Kushner, which took place at the Kremlin on 5 September.

One insider said that the Russian leader saw in this project an opportunity to demonstrate to his own society that business relations with Washington are possible.

Position of the US side

In response, US representatives stated their readiness to work on implementing this initiative. In Washington, such a deal is viewed as an instrument that would allow simultaneously strengthening diplomatic ties with Moscow and contributing to a reduction in global energy prices.

Financial aspects and regulation

The exact value of the future deal is not disclosed. Meanwhile, Lukoil previously valued its foreign assets at $20 billion.

Since the assets are under US sanctions, any deal for their purchase will require a special licence from the US Department of the Treasury. Therefore, the Donald Trump administration will have the final say in choosing the ultimate buyer.