US-Russia talks on Ukraine linked to multi-billion dollar Lukoil deal

US-led negotiations to end the war in Ukraine have expanded to include a multibillion-dollar deal for the international assets of Russian oil giant Lukoil. The proposed transaction, which requires approval from both Washington and the Kremlin, would benefit a group of investors with close ties to the US negotiators.

At the same time, Ukrainian President Volodymyr Zelenskyy has urged Donald Trump to block the development of a joint Russian and Chinese satellite communications network intended to rival Elon Musk's Starlink.

Together, the twin developments reveal how the diplomacy surrounding the war is increasingly intersecting with massive commercial interests, from global energy infrastructure to space-based communications.

What is the Lukoil oil deal?

The New York Times reported that Russian President Vladimir Putin raised the prospect of the Lukoil sale during a meeting in Moscow on 5 September with Steve Witkoff and Jared Kushner, the two men leading the Trump administration’s backchannel diplomacy with Russia. Putin suggested that approving the deal would show the Russian public that they could still do business with America.

The assets under discussion—valued by Lukoil at around $20 billion earlier this year—comprise a global network of oil fields, refineries, and petrol stations, including holdings in Cameroon, Europe, and the US.

A consortium led by Todd Boehly, the billionaire co-owner of the Los Angeles Dodgers, has emerged as the leading bidder. Boehly is a prominent donor to Trump's political campaigns, having given $1 million to the MAGA Inc. super PAC in December 2025 and another $1 million toward the presidential inauguration.

His bidding group includes Middle Eastern investors with direct ties to the US negotiators:

• The Al-Khayyat brothers: Qatar-based businessmen Moutaz and Ramez Al-Khayyat, who are working with Kushner and Ivanka Trump on a luxury resort project in Albania.
• Sheikh Tahnoon bin Zayed Al Nahyan: The Abu Dhabi royal controls an investment fund that bought a major stake in World Liberty Financial, the Trump-linked cryptocurrency venture co-founded by Witkoff. Another of his funds, Lunate, is a major backer of Kushner's private equity firm.

While Witkoff and Kushner would not personally profit from the deal, a senior US official said they have directly negotiated terms that would secure a substantial upfront payment and a share of future profits for the US government.

The US Treasury Department sanctioned Lukoil in October 2025, and any transaction requires a formal waiver. The Treasury has repeatedly extended temporary sanctions arrangements to keep the assets viable, with the current extension set to expire on 29 October.

Why is Zelenskyy targeting a Starlink rival?

As Washington dangles commercial incentives before Moscow, Ukrainian President Volodymyr Zelenskyy is lobbying the US administration to ramp up pressure on another front.

The Financial Times reported that Zelenskyy has asked Trump to impose sanctions on the Russian and Chinese companies working together to build a satellite communications network intended to rival Elon Musk's Starlink.

Starlink has been a lifeline for Ukraine’s military, providing the secure, high-speed battlefield communications that have kept its forces connected since the Russian invasion in 2022. Moscow's efforts to develop an independent alternative, with Chinese assistance, are seen by Kyiv as a direct threat to its long-term security.

Zelenskyy’s request is aimed at cutting off the supply of Western technology and capital to the joint project before it can become fully operational.

What happens next?

The overlapping negotiations show how the Trump administration is attempting to use financial carrots and technological sticks to force a resolution to the conflict.

By tying the potential sale of Lukoil's assets to broader peace talks, Washington is offering Moscow a path toward sanctions relief and renewed economic engagement. At the same time, the administration must weigh Zelenskyy's warnings about the growing strategic cooperation between Russia and China in space, which could reshape the technological balance of the war.