Trading firm Gunvor has officially withdrawn its proposal to acquire the international assets of the Russian oil company Lukoil. This decision comes in response to allegations from the U.S. government, which described Gunvor as “the Kremlin’s puppet.” The announcement was made on social media platform X, where Gunvor expressed its commitment to transparency and its distancing from Russian affiliations.
The proposed acquisition, which Lukoil had announced last week, was contingent upon obtaining approval from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). Specific terms of the deal were not disclosed. In a post on X, the Treasury Department referenced Russian President Vladimir Putin‘s military actions in Ukraine and former U.S. President Donald Trump‘s calls for an immediate end to the conflict, which has resulted in significant loss of life. The Treasury stated, “As long as Putin continues the senseless killings, the Kremlin’s puppet, Gunvor, will never get a license to operate and profit.”
In response, Gunvor rejected the Treasury’s claims, labeling them as “fundamentally misinformed and false.” The company emphasized its long-standing efforts to distance itself from Russia, stating that it has ceased trading in alignment with sanctions, divested from Russian assets, and publicly condemned the war in Ukraine. Gunvor confirmed its decision to withdraw from the Lukoil deal while seeking to clarify what it termed a misunderstanding.
Founded by Torbjörn Törnqvist, a Swedish oil magnate, and Gennady Timchenko, an oligarch with close ties to Putin, Gunvor has its main trading office in Geneva and headquarters in Nicosia, Cyprus. Törnqvist acquired Timchenko’s shares in March 2014, as the geopolitical landscape shifted following Russia’s annexation of Crimea, a move that has led to ongoing sanctions against the country.
Lukoil announced it was divesting its international assets in direct response to U.S. sanctions aimed at compelling Russia to cease hostilities in Ukraine. The company has interests in oil and gas projects across 11 countries, operates refineries in Bulgaria and Romania, and holds a 45% stake in a refinery in the Netherlands. The decision to sell reflects the challenges faced by Russian energy firms in the wake of international sanctions and the shifting dynamics of global energy markets.
With Gunvor stepping back, the future of Lukoil’s international assets remains uncertain, highlighting the complex interplay between international commerce and geopolitical tensions.
