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U.S. Billionaire Leads Swap Plan to Buy Lukoil’s Overseas Assets, Sources Say
A consortium led by US billionaire Todd Boehly is preparing to acquire Lukoil’s overseas oil and fuel assets through a swap of frozen securities, with a deal expected within weeks, according to people familiar with the process. If completed, it would end a sale effort lasting more than a year and test whether Western sanctions can force a major Russian company to sell international holdings while limiting the financial benefit to Moscow.
The proposed cashless deal would exchange Lukoil securities held by Western investors for assets including oilfields, refineries and petrol stations across Europe, the Middle East and Africa. A bank for the consortium has bought billions of dollars’ worth of securities from about 10 US and British funds and depositary banks, at around 30 cents per dollar. The portfolio was initially valued at $22 billion, though some assets have stopped operating; the consortium also includes Emirati investors, the Al-Khayat brothers and the US DFC.
In short
- Todd Boehly’s consortium is leading a bid for Lukoil’s overseas assets.
- The plan swaps frozen securities for oilfields, refineries and petrol stations.
- The portfolio was initially valued at $22 billion, but some assets have stalled.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A swap could give Western investors a way to recover some value from frozen Lukoil securities while transferring valuable overseas operations to new owners. If sanctions rules prevent proceeds reaching Moscow, the transaction could also advance the policy aim of reducing Russian control and influence without simply leaving assets idle.
The case against
The deal could turn frozen securities into a substantial discount purchase for the consortium, while the reported scale of the asset portfolio raises questions about whether the exchange fairly reflects its remaining value. Even without a cash payment to Lukoil, transferring productive assets could indirectly benefit the company or Russia, and the transaction may test whether sanctions are being applied in a way that reliably limits such benefits.
Explained simply
Lukoil is one of Russia’s largest oil companies, with businesses beyond Russia that include oilfields, refineries and petrol stations. Western sanctions imposed after Russia’s invasion of Ukraine have restricted dealings with Russian companies and left some Western investors holding Lukoil securities they cannot freely trade.
Todd Boehly is a US investor whose consortium is seeking to take over those overseas businesses. Its proposed swap would exchange frozen Lukoil securities held by investors for the assets, rather than pay for them in cash; the group also includes Emirati investors and the US government’s development finance agency.
The plan matters because it could reshape who owns important energy businesses across several regions. It also raises the question of whether sanctions can push a Russian company to give up overseas assets while limiting the money that reaches Russia.
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