U.S. peace negotiations with Russia could now involve multi-billion dollar Lukoil deal, NYT reports

Recent U.S. peace negotiations with Russia have expanded to include the potential multi-billion dollar deal involving assets owned by Russian oil company Lukoil, according to a report by the New York Times (NYT) on October 3. Business executives with ties to U.S. envoys Jared Kushner and Steve Witkoff are exploring a deal that could involve Lukoil's refineries, oil fields, and gas stations worldwide.

This proposal was suggested by Russian President Vladimir Putin to Jared Kushner and Steve Witkoff during their visit to Moscow on September 5 as a means of demonstrating that Russia could still engage in business with the United States. Both envoys agreed to pursue the proposal as a way to build goodwill with the Russians. Additionally, the potential deal could benefit the United States by decreasing global oil prices following sanctions against Lukoil assets.

Lukoil, Russia's second-largest oil producer and one of the country's largest companies, accounts for 2% of global oil output and is currently under U.S. sanctions. These sanctions, imposed by the second Trump administration in October 2025, were aimed at pressuring Moscow into peace talks in Ukraine by targeting the company's role in funding the Kremlin's war efforts.

The U.S. government has issued a limited sanctions waiver for some of Lukoil's foreign assets, which has been extended earlier this year. While the U.S. Senate recently passed a bill to make it easier to impose sanctions on countries that subsidize Russia's war economy, the new potential agreement could potentially lift these sanctions, increasing the value of Lukoil's assets.