Who is Lukoil? How is it connected to Jared Kushner?

Who Lukoil is

PJSC Lukoil is a Russian multinational energy corporation headquartered in Moscow, specializing in the extraction, production, transport, and sale of petroleum, natural gas, petroleum products, and electricity. It was formed in 1991 when three state-run western Siberian companies merged, and its name is a combination of the acronym LUK, the initials of the oil-producing cities of Langepas, Uray and Kogalym, and the English word "oil".

Lukoil accounts for over 2% of crude production and around 1% of proved hydrocarbon reserves globally, making it the second largest private oil company worldwide by proven hydrocarbon reserves. The company has interests in properties across Russia, Kazakhstan, Azerbaijan, Uzbekistan, the Middle East, South America, Northern and Western Africa and Southeast Asia.

The Kushner connection

After the U.S. government imposed sanctions on Lukoil, the company moved to divest its international operations. High-level U.S.-Russian diplomatic negotiations to resolve the war in Ukraine have expanded to include a multibillion-dollar transaction involving Lukoil's global oil assets, discussed directly with Vladimir Putin by U.S. special envoys Steve Witkoff and Jared Kushner, involving a consortium featuring American investor Todd Boehly and Middle Eastern business groups with ties to the negotiators.

Putin raised the potential deal with Kushner and Witkoff during their visit to Moscow, proposing it as a way to demonstrate to Russians that they could still do business with the United States.

The primary consortium seeking to finalize the acquisition includes Boehly, who contributed $2 million to political entities supporting President Trump, alongside two Middle Eastern investment groups that maintain prior commercial ties with Kushner or the Witkoff family, as well as an entity affiliated with the U.S. government.

The conflict-of-interest question

The potential sale of Lukoil assets to American buyers, including stakeholders with ties to Kushner's private equity firm and the Trump family, could release those assets from Russian sanctions and significantly increase their value, prompting ethical concerns and questions about the Trump administration's evaluation process.

The transaction remains contingent on approval from both Washington and Moscow, and while it would benefit those investors, there is no indication Kushner or Witkoff would personally profit.

The broader strategic aim, according to reporting, is to win Putin over through a U.S.-orchestrated deal, so that he will later help find a solution to the war in Ukraine. Critics, including economist Steve Hanke, have characterized the arrangement as presenting more conflicts of interest than is normal for diplomatic work. A senior Russian envoy, Kirill Dmitriev, publicly defended Kushner after the reports raised those conflict-of-interest concerns.