Sources claim that Fedun, the co-founder of Lukoil, has sold his stake to the company.

Three sources and data show that Leonid Fedun sold his $7 billion stake in Lukoil. This marked the end of a 30-year journey which made Lukoil an international force, but saw it recently shrinking rapidly under sanctions.

Lukoil, which had avoided Western sanctions for months over Russia's invasion in Ukraine, was severely hit by Western sanctions and now is selling its foreign assets.

Analysts have long suggested that the company could be a target for Rosneft - a state-controlled competitor, which is now also subject to Western sanctions.

Fedun, a Ukrainian born in Monaco, sold his 10% stake to Lukoil at the beginning of 2025. This is a rare instance where a Russian billionaire has quietly sold off his assets in his home country.

Lukoil announced in August that it would cancel about 11% or 76,000,000 shares of its capital, which it had bought back on the market between 2024-2025.

Fedun's share was valued at around $7 billion based on calculations made based on current market prices. However, it is not clear if that is what he paid.

Lukoil has declined to make any comment.

Fedun was not available for comment.

Retrenchment from the spotlight

Fedun, aged 69, was one of Russia's wealthiest people during the chaos of privatisations in the 1990s, under the late President Boris Yeltsin, after the collapse the Soviet Union.

Fedun, a military school graduate who pursued a career in teaching, met Vagit Alekperov (74), a Soviet oil director, when he traveled to Siberia.

When Yeltsin authorized their sale in 1993 they worked together to privatise some of the best West Siberian Oil Fields. This was a move which turned state-owned enterprises into private companies and made some state employees overnight billionaires.

Alekperov, Lukoil’s CEO, focused on the rebuilding of oil production in Russia. Fedun concentrated on acquisitions within and outside Russia.

ConocoPhillips, a U.S. company, bought a large stake in Lukoil back in 2004, only to sell the shares in 2010, as they refocused their business on the U.S.

Lukoil grew after Vladimir Putin replaced Yeltsin as president in 2000, and sought to consolidate the state's control over strategic industries.

Lukoil was targeted by the Kremlin as part of its back-tax claims probes of the industry, but it managed to avoid the destruction of Yukos and the political ambitions of its shareholders.

Fedun, who mirrors the extravagant spending of other Russian Oligarchs in his investment in Spartak Moscow's Russian Premier League soccer club, has become a major investor.

Alekperov, the CEO of Lukoil, resigned from his position when Russia invaded Ukraine 2022 after Britain and Australia imposed sanction on him.

Lukoil made rare public comments against the so-called special military operation in Russia, saying it was worried by the "tragic" events that took place in Ukraine. It also supported the negotiations to bring an end to the conflict.

Three sources claim that Fedun has retreated while Alekperov remains active behind the scenes with Lukoil. He sold his Spartak stake in August 2022. In June 2022, he resigned as vice president. Lukoil stated at the time, Fedun's departure was due to his retirement age and personal reasons.

One source said that Fedun, as a Monaco resident decided to reduce his Russian holdings. (Reporting done by Anna Hirtenstein & Dmitry Zhdannikov. Mark Potter edited the article.

(source: Reuters)