Here is a detailed summary of the reported developments concerning Lukoil and its former executive, Leonid Fedun.

Executive Share Sale and Corporate Restructuring

Leonid Fedun, the former long-serving vice-president and right-hand man to Lukoil's founder, sold his entire stake in the company, estimated at approximately 10%, back to Lukoil in early 2025. Based on the stake's size and average stock price, the holding was valued at an estimated $7 billion, though the actual amount Fedun received remains unconfirmed. Following this purchase, Lukoil's board approved a plan to cancel about 76 million shares, representing roughly 11% of its issued stock, which it had acquired in 2024 and 2025. The company did not disclose the purchase price or the seller, but noted the expense was excluded from its first-half free cash flow results and that no dividends would be paid on the repurchased shares. As of the report, this share cancellation had not yet been executed, as the total number of shares in circulation remained unchanged. Once completed, the move will increase the ownership stakes of founder Vagit Alekperov and other existing investors by over 12%.

Background on Fedun and Alekperov

Fedun was a key figure in Lukoil's history, appointed vice-president in 1994, a year after its founding by Vagit Alekperov. He was instrumental in streamlining the company's finances and formulating its expansion strategy as it grew into one of Russia's top two oil producers. Fedun resigned in 2022 following Russia's invasion of Ukraine and, according to reports, subsequently changed his domicile from Russia to Europe along with his family. Alekperov, who held a stake of more than 28% as of October 2021, also resigned as chief executive in April 2022 after the UK and Australia imposed sanctions on him.

Impact of US Sanctions and International Operations

The US imposed sanctions on Lukoil in October 2025, and the company is now seeking to sell its international upstream and downstream assets to comply. A key international asset is its operatorship of the 480,000 barrels-per-day West Qurna 2 oil development in Iraq. The sanctions have directly impacted these operations; Lukoil was unable to pay local staff salaries, leading to a risk of production interruptions. The Iraqi state had to intervene to arrange the payment of these delayed salaries. This issue was discussed in a meeting between Iraqi Prime Minister Mohammed Al-Sudani and Alekperov in Baghdad, where they focused on finding solutions to ensure stable oil production and maintain Iraq's contribution to global oil supply markets amidst the challenges posed by the US Treasury's measures.