U.S.-based Xtellus Partners vies for Lukoil's foreign assets
Lukoil is reportedly favoring the sale of its international assets to the bank Xtellus Partners, which has proposed a cashless deal involving an exchange of securities. Negotiations are being led by vice president Pavlo Zhdanov; the transaction requires disclosure of owners and may need approval from the Kremlin.
By Oleg Bazylewicz
December 11, 2025 · 1 min read
Lukoil is currently leaning toward selling its foreign assets to the US financial firm Xtellus Partners.
Xtellus’s proposal
Unlike other candidates, the bank proposed avoiding a direct cash settlement: instead it offers to swap Lukoil securities held by US investors for the company’s international assets.
Negotiations on behalf of Lukoil are being led by the company’s vice president, Pavlo Zhdanov.
This proposal is more complex than other options because it involves share transactions and disclosure of information about their holders.
History of the shares and risks
Until March 2022, Lukoil’s securities were included in emerging market indices and were held in the portfolios of large investors and exchange-traded funds.
Another obstacle is that such an exchange may require approval from Russian authorities.
If the terms of the sale are not agreed by the deadline set by Donald Trump’s administration, the assets could be left in limbo and at risk of confiscation.
Interested buyers
- On October 22 the United States imposed sanctions on Lukoil; after that the company announced plans to sell its foreign assets. The first contender was the trader Gunvor, but it withdrew its bid due to the lack of OFAC approval.
- Among the interested parties are named Exxon Mobil, Chevron, the investment firm Carlyle, the Abu Dhabi conglomerate IHC, Chelsea FC co-owner Todd Boehly and Austrian businessman Bernd Bergmaier.
- The United States extended the deadline to agree and conclude deals regarding Lukoil International GmbH and related assets to January 17, 2026.
