Trading firm Gunvor has officially withdrawn its proposal to acquire the international assets of Russian oil company Lukoil. The decision comes after the U.S. government accused Gunvor of being “the Kremlin’s puppet,” a claim the company vehemently disputes. Based in Geneva, Gunvor announced its withdrawal on social media platform X, following Lukoil’s previous announcement regarding the potential deal.
Lukoil had confirmed its intention to sell assets, contingent upon approval from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). The details of the proposed deal were not disclosed. In a statement on X, the Treasury Department referenced Russian President Vladimir Putin‘s actions during the invasion of Ukraine, which began in February 2022, and highlighted former U.S. President Donald Trump‘s calls for an immediate end to the conflict. The Treasury’s post read, “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 issued a statement asserting that the U.S. Treasury’s characterization was “fundamentally misinformed and false.” The company emphasized its commitment to transparency and noted that it has actively distanced itself from Russia since the conflict began. Gunvor stated, “We have for more than a decade actively distanced ourselves from Russia, stopped trading in line with sanctions, sold off Russian assets, and publicly condemned the war in Ukraine.” The firm also made it clear that it would like the opportunity to correct any misunderstandings regarding its operations and ownership.
Founded by Swedish oil magnate Torbjörn Törnqvist and Gennady Timchenko, an oligarch with close ties to Putin, Gunvor’s headquarters are now located in Nicosia, Cyprus. Timchenko is no longer affiliated with the company; he sold his shares to Törnqvist in March 2014, following Russia’s annexation of Crimea.
Lukoil, which has extensive oil and gas interests across 11 countries, including refineries in Bulgaria and Romania, as well as a significant stake in a Dutch refinery, is responding to increasing U.S. sanctions aimed at compelling a ceasefire in the ongoing conflict in Ukraine. The company’s international assets encompass a variety of operations, including gas stations in multiple countries.
Gunvor’s withdrawal from the proposed acquisition illustrates the complexities that international trading firms face in the current geopolitical climate. As sanctions against Russia continue to evolve, companies must navigate a challenging landscape that directly impacts their business strategies and reputations.
