US blocks Swiss firm Gunvor from acquiring sanctioned Lukoil assets

The Washington administration announced it would not permit the Swiss oil company Gunvor to purchase the foreign assets of Lukoil, Russia’s largest private oil and gas company.

A statement from the US Treasury Department said, “President Donald Trump has clearly stated that the war in Ukraine must end immediately. As long as Russian President Vladimir Putin continues his senseless massacres, the Kremlin’s puppet, Gunvor, will never receive a license to operate and profit.”

Gunvor’s response: Allegations are misleading

Approximately one hour after this announcement, Gunvor announced it was withdrawing its offer to purchase Lukoil’s foreign assets.

The company described the US Treasury Department’s statement as “completely misleading and false.”

A statement from the company read, “Gunvor has always been open and transparent about its ownership structure and operations. For over a decade, it has been actively distancing itself from Russia, ceasing trade in compliance with sanctions, divesting Russian assets, and publicly condemning the war in Ukraine.”

Treasury approval was required for the deal

On October 22, the US imposed sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, and their affiliated entities.

A week after this decision, Gunvor, founded in 1997 by Swedish businessman Torbjörn Törnqvist and billionaire Gennady Timchenko, known for his proximity to the Russian President, announced its plans to acquire Lukoil’s foreign assets.

These assets included dozens of businesses in oil production, fuel processing, and retail sales across 11 countries worldwide, with a total value of approximately $21 billion.

However, the completion of the deal was contingent on Gunvor receiving approval from the US Treasury Department.

Meanwhile, according to a report by the Bloomberg news organization citing sources familiar with the matter, these developments prompted the US to investigate the oil trading company’s past connections with Moscow.

The report highlighted that if Gunvor were to acquire Lukoil’s foreign assets, the two largest deals of co-founder Törnqvist’s career would have been realized thanks to US sanctions.

Indeed, after the Washington administration implemented restrictions against Moscow in 2014, billionaire Timchenko sold his stake in the company to Törnqvist.

At that time, the US Treasury Department stated that Timchenko’s activities in the energy sector were “directly linked to Putin,” and that the Russian President had investments in Gunvor and could access the company’s resources.

On the other hand, Törnqvist had stated that if Lukoil’s foreign assets were sold to Gunvor, they would never return to the Russian company.

Törnqvist also argued that the sale would not benefit Russia in any way and that US authorities should not oppose the deal.

The Washington administration had previously given Lukoil a deadline of November 21 to divest its foreign assets.

According to Bloomberg‘s report, major energy companies had previously contacted Lukoil representatives to express interest in purchasing the assets but were turned away due to Gunvor’s offer.