--- title: "Todd Boehly's Consortium Prepares to Buy Lukoil's Foreign Assets for $20–22B" description: "A consortium led by American billionaire Todd Boehly could swap Western-frozen Lukoil securities for its foreign assets worth about $20–22 billion in the coming weeks, according to Reuters. The deal is seen as a test of sanctions effectiveness and was discussed at the Kremlin level." date: 2026-11-03T20:42:36.124Z lang: en url: https://xab.info/en/posts/lukoil-foreign-assets-todd-boehly-consortium tags: [lukoil, todd-boehly, sanctions, oil, russia, us-treasury, m-a] author: "Andrey Kosynko, Darya Fomina" publisher: "XAB.info" --- # Todd Boehly's Consortium Prepares to Buy Lukoil's Foreign Assets for $20–22B ![Lukoil logo behind barbed wire fencing](https://xab.info/media/2026/11/03/lukoil-zarubezhnye-aktivi-konsortium-todd-boeli/lukoil-zarubezhnye-aktivi-konsortium-todd-boeli-1.webp) ## Key Points - Todd Boehly's consortium is preparing to swap Western-frozen Lukoil securities for its international assets within weeks. - The portfolio was initially valued at $22B before dropping; Fontanka (citing FT) reports about $20B. - The deal is cashless: securities were bought from ~10 Western funds at ~30 cents on the dollar, with shares to be placed in escrow. - According to sources, Putin raised the deal during a September 5 meeting with Witkoff and Kushner; Moscow treats the decision as crucial. - The US extended general licenses for operations involving Lukoil's foreign gas stations and Bulgarian subsidiaries until April 24, 2027. A consortium led by American billionaire Todd Boehly is nearing the acquisition of international assets belonging to Russian oil giant Lukoil, according to Reuters. Four sources familiar with the process stated that a share swap to transfer the company's foreign assets could take place within a few weeks. According to them, a bank acting on behalf of the consortium has already purchased billions of dollars worth of frozen Lukoil securities from Western investment funds, which will subsequently be swapped for the company's foreign assets. The deal, if finalized, will serve as one of the first major tests of whether Western sanctions can force a major Russian corporation to part with its international business. ### Deal Mechanics: Cashless Exchange and Escrow According to the sources, the structure of the agreement is cashless: frozen Lukoil securities held by Western investors, including Capital Group, will be exchanged for the company's international assets. The consortium's bank, two sources reported, bought the securities from about ten US and British investment funds, as well as US depository banks holding them on behalf of retail investors. The value of the shares, estimated by two other individuals, was around 30 cents on the dollar—a significant discount reflecting the sanctioned status of the securities. A key condition enabling Boehly's consortium to move forward was a promise to place the shares in an escrow account rather than transferring them directly to Lukoil, two sources said. The bid is also supported by Syrian-Qatari brothers Al-Hayat and the US International Development Finance Corporation (DFC). ### Portfolio Valuation and Composition Initially, the portfolio of assets up for sale was estimated at $22 billion; however, two people said its value has declined after some assets ceased operations. The Russian outlet Fontanka, citing the Financial Times, cites a more modest figure of about $20 billion and notes that the proposal is at an advanced stage, although no final agreement has been reached with Lukoil. According to the publication, the package includes oilfields, refineries, and thousands of gas stations. Notably, Lukoil itself has already written off the value of these assets in its bookkeeping to the tune of 1.66 trillion rubles, which roughly corresponds to the stated sale value. ### Political Context and the Kremlin's Role The sale process began after the US imposed sanctions on the company in October 2025. In February, Reuters reported that Washington intentionally slowed the sale to pressure Russia in negotiations to end the war in Ukraine. Previously, more than a dozen companies vied for the assets. According to three sources familiar with the meeting, Vladimir Putin raised the issue of the agreement during a meeting with US President's special envoys Steve Witkoff and Jared Kushner in the Kremlin on September 5; one source claims Putin suggested making the deal to show Russians that they can do business with the US. In Moscow, the decision on the agreement is effectively made at Putin's level, according to sources, although Lukoil is formally a private company. The deal also refocuses attention on Donald Trump's cryptocurrency company World Liberty Financial, which Witkoff co-founded: one of the investors in the Lukoil deal is a co-owner of World Liberty. ### Sanctions Licenses and Exemptions In parallel with preparations for the deal, US authorities are maintaining the limited operation of Lukoil's foreign assets. According to RBC-Ukraine, the US Department of Treasury extended general licenses allowing operations with the company's foreign gas stations and a number of subsidiaries in Bulgaria until April 24, 2027. In April 2026, US authorities had already extended sanctions exemptions regarding Lukoil; the previous expiration date was set for October 22, 2026. These mechanisms create a temporary legal window in which the foreign business can continue operating until the deal is completed. ### Market and Sanctions Policy Significance The completion of the deal will set a precedent for evaluating the effectiveness of Western sanctions as an instrument for compelling asset diversification. If the exchange takes place, funds of Russian investors frozen in the West will effectively convert into control over Lukoil's international business in the hands of the American consortium, while part of the proceeds, according to Russian observers, could be channeled into the development and repair of Russian production facilities. For investors, the key issue remains the legal stability of the escrow structure and sanctions risks, while for geopolitics, it sends a signal that the sanctions regime can be used as leverage in broader negotiating tracks between Washington and Moscow. ## Accounts differ ### Valuation of Lukoil's foreign asset portfolio - **Reuters (via RBC-Ukraine):** The portfolio was initially valued at $22 billion, after which the value dropped due to the shutdown of some assets. ([rbc.ua](https://www.rbc.ua/ukr/news/zakordonni-aktivi-pidsanktsiynoyi-kompaniyi-1793738310.html)) - **Financial Times (via Fontanka):** Boehly's consortium is competing for assets worth roughly $20 billion; Lukoil wrote them off for 1.66 trillion rubles. ([fontanka.ru](https://www.fontanka.ru/2026/09/24/76659609/)) *Where they agree:* The portfolio includes oilfields, refineries, and thousands of gas stations, valued at tens of billions of dollars; Lukoil has written off these assets in its books. ### Stage of the acquisition agreement - **Reuters (via RBC-Ukraine):** A securities exchange to acquire the assets is expected within a few weeks. ([rbc.ua](https://www.rbc.ua/ukr/news/zakordonni-aktivi-pidsanktsiynoyi-kompaniyi-1793738310.html)) - **Financial Times (via Fontanka):** The proposal is at an advanced stage, although no final agreement has been reached with Lukoil yet. ([fontanka.ru](https://www.fontanka.ru/2026/09/24/76659609/)) *Where they agree:* Todd Boehly's consortium is the leading bidder, and the process is at an advanced stage. ## Fact-Check & Sources - [Зарубежные активы подсанкционной компании "Лукойл" покупает миллиардер из США, - Reuters](https://www.rbc.ua/ukr/news/zakordonni-aktivi-pidsanktsiynoyi-kompaniyi-1793738310.html) - Primary source: Boehly consortium, cashless exchange, ~10 funds, 30 cents on the dollar, escrow, DFC and Al-Hayat brothers, September 5 meeting, licenses until 2027-04-24. Deal is expected but not signed. - [Старый претендент с новыми партнерами: кто хочет купить зарубежный бизнес ЛУКОЙЛа и что от ...](https://www.fontanka.ru/2026/09/24/76659609/) - Citing FT: ~$20B valuation, advanced stage without final agreement, Lukoil's write-down of assets by 1.66 trillion rubles, portfolio composition (oilfields, refineries, gas stations). ## FAQ ### Who is buying Lukoil's foreign assets? According to Reuters, a consortium led by American billionaire Todd Boehly, supported by the Al-Hayat brothers and the US DFC. ### How much are the assets for sale worth? The portfolio was initially valued at $22 billion, but the figure dropped after some assets stopped operating; Fontanka, citing the Financial Times, names about $20 billion. ### How is the deal structured? It is cashless: the consortium's bank bought frozen Lukoil securities from Western funds at roughly 30 cents on the dollar and will exchange them for international assets; the shares are planned to be placed in an escrow account. ### Is the deal fully finalized? No. Reuters reports the exchange could happen within weeks, while the Financial Times (via Fontanka) indicates an advanced stage without a final agreement with Lukoil.