Trading firm Gunvor has abandoned its plans to acquire the international assets of Russian oil company Lukoil, following allegations from the United States government that it operates as “the Kremlin’s puppet.” The decision comes shortly after Gunvor publicly rejected these accusations, asserting its commitment to transparency and distancing itself from Russian influence.
The announcement regarding the withdrawal was made on social media platform X, where Gunvor stated that it is retracting its proposal for Lukoil’s assets. The deal, which had been announced by Lukoil last week, was contingent on obtaining approval from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). Specific terms of the proposed acquisition were not disclosed.
In a post late Thursday, the U.S. Treasury Department referenced the ongoing conflict in Ukraine, specifically noting Russian President Vladimir Putin‘s decision to send troops into the country in February 2022. The department’s statement emphasized that as long as Putin continues military actions, Gunvor would not receive the necessary license to operate and profit from the deal.
Gunvor responded to the Treasury’s remarks by claiming they were “fundamentally misinformed and false.” The firm highlighted its long-standing commitment to transparency regarding its ownership structure and business operations. Gunvor pointed out that it has actively distanced itself from Russia over the past decade, ceased trading consistent with sanctions, and publicly condemned the war in Ukraine.
Lukoil has been attempting to sell its international assets in response to U.S. sanctions aimed at pressuring Russia into agreeing to a ceasefire in its ongoing conflict with Ukraine. The company holds interests in oil and gas projects across eleven countries, operates refineries in Bulgaria and Romania, and has a 45% stake in a refinery in the Netherlands, in addition to gas stations in multiple locations.
Gunvor was co-founded by Swedish oil magnate Torbjörn Törnqvist and Gennady Timchenko, an oligarch with close ties to Putin. Following the annexation of Crimea in March 2014, Timchenko sold his shares in Gunvor to Törnqvist, distancing the company from Russian influence in anticipation of potential sanctions.
The recent developments underscore the complexities of international business relations in the wake of geopolitical tensions. Gunvor’s decision to withdraw from the acquisition reflects not only the challenges posed by U.S. sanctions but also the broader impact of the ongoing conflict in Ukraine on global energy markets.
