Swiss commodities trader Gunvor has announced the withdrawal of its proposed $22bn acquisition of Russian oil major Lukoil’s international assets following a statement from the US Treasury indicating it would oppose the transaction. The decision ends months of negotiations between the two companies, which had sought to finalise the deal amid escalating geopolitical tensions.
US opposition amid expanded sanctions
The US Treasury stated in an official post that Gunvor would not receive authorisation to operate Lukoil’s assets “as long as Vladimir Putin continues the senseless killings in Ukraine”. The agency referred to Gunvor as a “Kremlin’s puppet”, a direct reference to company co-founder Gennady Timchenko, a close ally of the Russian president.
Gunvor responded by calling the allegations “fundamentally false” and reiterated that it had exited Russia, divested its Russian assets and publicly condemned the invasion of Ukraine. In a statement, the company said it was formally withdrawing its proposal and looked forward to clarifying what it described as a misunderstanding.
Strategic assets now in limbo
The targeted assets included refineries in Romania and Bulgaria, a network of petrol stations in the United States and Europe, and oil and gas fields across the Middle East, Africa and Central Asia. Their future remains unclear as new sanctions against Lukoil are set to take effect on November 21.
Gunvor had previously warned that blocking the deal could result in job losses across Europe and disruptions to fuel supply, notably in Bulgaria and Romania. Lukoil’s Burgas refinery supplies more than two-thirds of Bulgaria’s fuel, while its Petrotel facility represents about one-third of Romania’s refining capacity.
Geopolitical pressure reshapes deal
Gunvor’s attempt to acquire Lukoil’s assets was seen as an exit route for the Russian group, recently targeted by intensified US sanctions. The measures also included Kremlin-controlled Rosneft and aimed to limit revenues funding the war in Ukraine.
Founded in the 1990s by Torbjörn Törnqvist and Gennady Timchenko, Gunvor has maintained that Timchenko has had no involvement in the company since selling his stake to Törnqvist following Russia’s annexation of Crimea.
