Boehly group plans securities swap for Lukoil assets

A consortium led by US billionaire Todd Boehly is preparing a cashless securities swap to buy the international assets of sanctioned Russian oil company Lukoil PJSC Lukoil, and a deal is expected within weeks, Reuters reported on November 3, citing four people close to the sale. Three of those people said a bank acting for the group has already bought billions of dollars of frozen Lukoil securities from Western investment funds to exchange for the company's foreign holdings.reuters.com

A completed deal would end a sale process that has run for more than a year. The portfolio was first valued at $22 billion and covers oilfields, refineries and petrol stations in Europe, the Middle East and Africa. Two sources said its value has fallen as some assets have stopped operating.themoscowtimes.com

How the swap would work

Under the plan, frozen Lukoil securities held by Western investors, including Capital Group, would be traded for Lukoil's international assets. The bank bought the securities from about 10 US and British funds and from US depositary banks that held them for retail investors, paying about 30 cents on the dollar.themoscowtimes.com

According to two people, the consortium got past a key hurdle by promising to put the shares in an escrow account instead of sending them straight to Lukoil. In December, the US Treasury turned down a bid from a group that included Xtellus Partners, saying Lukoil should not receive a windfall in shares or cash. Romania Insider reported that the assets involved include Lukoil's operations in Romania.romania-insider.com+1

Who is backing the bid

Boehly, who holds stakes in the Los Angeles Dodgers and Lakers, is joined by Emirati investors International Holding Company and Al Hail Holding. The Syrian-Qatari Al-Khayat brothers and the US International Development Finance Corp. are also backing the offer. An IHC spokesperson said the company does not comment on potential investments. Boehly's representatives and the other backers did not respond to Reuters' requests for comment.reuters.com

In September, the Financial Times reported that Boehly had won support from the US government and from Gulf power brokers with ties to the Trump family.reuters.com

A crowded, drawn-out race

Washington put sanctions on Lukoil in October 2025, which started the sale. More than a dozen parties made bids, including Exxon Mobil ↘ 1.23%, Chevron ↘ 1.10% and Carlyle The Carlyle Group Inc. ↗ 3.91%. Carlyle pulled out in October, leaving Boehly's group in front (The Moscow Times; Reuters). Reuters has also reported that the US slowed the process partly to put pressure on Russia in talks to end the war in Ukraine.reuters.com+1

The deal will test whether Western sanctions can make a major Russian company sell its foreign assets while keeping the oil operations running and limiting what Moscow gains.reuters.com