To transfer cost-effectively, I suggest the following:
1) Send BTC to them
2) Let them convert BTC to LR. Currently 5 exchanges can do that: Mtgox, Tradehill (if using LR currency when buying and not USD!), Bitcoin-Central, bitcoin7.com and Btcex.com. MtGox has best exchange rate at the moment, but LR withdrawals take from a few hours to a week. TradeHill LR withdrawals are slow too. Btcex, Bitcoin-Central and bitcoin7.com all have instant withdrawal but mediocre exchange rate. bitcoin7 is the only exchange with quick withdrawals and decent volume.
3) Let them find a LR-to-Cash exchange with decent (4-5%, not 8+%) commission. One example is http://urknetmoney.com
, but it's Ukraine.