The Trump administration is advancing a proposed multibillion-dollar deal to acquire international assets owned by the Russian energy company Lukoil, a move supporters say could bolster U.S. foreign policy interests while critics raise concerns about the deal’s complex ownership structure and potential geopolitical implications.
The transaction involves a portfolio of oil fields, refineries, and gas stations worldwide, including approximately 200 gas stations along the U.S. East Coast. The United States government, through the International Development Finance Corporation (DFC), would secure a roughly 15 percent stake without providing upfront capital. The remainder of the equity would predominantly be held by private investors, with more than half attributed to a consortium of Middle Eastern investors. These include entities connected to the Abu Dhabi royal family in the United Arab Emirates (UAE), as well as Syrian-born billionaire brothers Ramez and Moutaz Al-Khayyat from Qatar. The Khayyats maintain business partnerships with Jared Kushner, former President Trump’s son-in-law, and Ivanka Trump, the former president’s daughter.
American billionaire Todd Boehly, leader of the investor group and a prominent donor to pro-Trump causes, would hold a minority stake. However, the deal is designed so that the United States, represented by Boehly’s group and the DFC, would control the majority of the board overseeing the new entity formed from the acquisition.
The transaction remains contingent on approval by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), which has imposed sanctions on Lukoil since last year. Officials have emphasized that the deal must not result in financial benefits flowing back to Russian stakeholders, a key prerequisite for lifting sanctions on the assets once the sale concludes.
Negotiations have been ongoing since late last year, with the Trump administration positing that the deal could promote "energy dominance," reduce consumer energy prices, and signal U.S. commitment to engaging with Russia economically in hopes of influencing the resolution of the war in Ukraine. The Kremlin, led by President Vladimir Putin, who discussed the deal during a recent meeting with Kushner and Trump envoy Steve Witkoff, views the sale as a potential tool to mitigate Western pressure amid ongoing conflict.
Some analysts caution that the deal blurs the lines between U.S. national security interests and private commercial ventures. The involvement of Middle Eastern investors with existing ties to Kushner and Witkoff, both of whom serve as special envoys for Ukraine peace efforts, has drawn scrutiny. While neither Kushner nor Witkoff are reported to benefit personally from the deal, questions continue about their role in facilitating the transaction.
Previous bidders, such as the Carlyle Group—a private equity firm—have withdrawn after delays in obtaining government sign-off. Investors plan to invest hundreds of millions of dollars post-sale to upgrade and expand the international assets, which span Europe, Africa, the Middle East, Mexico, and the United States.
The Treasury Department set a deadline of October 22 to conclude the negotiations, but lawmakers have expressed concern about the timing and potential consequences. Senators Roger Wicker, chairman of the Senate Armed Services Committee, and Jeanne Shaheen, ranking member of the Senate Foreign Relations Committee, urged senior officials to ensure no financial gains accrue to Russian interests, warning that slackening economic pressure might prolong Moscow’s military actions in Ukraine.
Dmitri S. Peskov, Kremlin spokesperson, declined detailed comment but acknowledged energy sector cooperation remains a subject of discussion between Russian and U.S. interlocutors.
The deal’s fate remains uncertain as stakeholders weigh its economic benefits against its geopolitical ramifications amid ongoing conflict and shifting international alliances.