A prominent commodities trading firm, Gunvor, has withdrawn its proposal to acquire the international assets of Russian oil company Lukoil. This decision follows allegations from the U.S. Treasury Department, which labeled Gunvor as “the Kremlin’s puppet” in connection with the ongoing war in Ukraine.
Gunvor, headquartered in Geneva, made its announcement on X (formerly Twitter) after Lukoil confirmed the proposed acquisition last week. The Russian company had indicated its willingness to sell these international assets, contingent upon receiving the necessary approvals from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC).
The terms of the proposed deal have not been publicly disclosed. However, the U.S. Treasury’s statement highlighted the implications of the conflict in Ukraine, referencing President Vladimir Putin‘s decision to invade in February 2022. The Treasury’s post noted, “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 strongly refuted the allegations. The firm stated that the Treasury Department’s characterization was “fundamentally misinformed and false.” Gunvor emphasized its history of transparency regarding ownership and business practices, asserting that it has distanced itself from Russia for over a decade. The company has ceased trading in alignment with sanctions, divested from Russian assets, and publicly condemned the war in Ukraine.
Gunvor was established by Torbjörn Törnqvist, a Swedish oil magnate, and Gennady Timchenko, an oligarch with close ties to Putin. Törnqvist currently serves as the company’s chairman. Gunvor clarified that Timchenko is no longer affiliated with the firm, as he sold his shares to Törnqvist in March 2014 in anticipation of potential economic sanctions following Russia’s annexation of Crimea.
Lukoil, facing increasing pressure from U.S. sanctions, has been seeking to divest its international assets. The company holds stakes in oil and gas projects across 11 countries, operates refineries in Bulgaria and Romania, and possesses a 45% stake in a refinery in the Netherlands, along with numerous gas stations worldwide.
The fallout from this situation underscores the complex dynamics in the global energy market, particularly as companies navigate the geopolitical landscape shaped by the ongoing conflict in Ukraine. Gunvor’s withdrawal from the Lukoil deal is a significant development that reflects the broader impact of U.S. sanctions on Russian enterprises and their international partners.
