Gunvor Withdraws $22 Billion Lukoil Acquisition Bid After U.S. Blocks Deal

Swiss commodities trader Gunvor has withdrawn its $22 billion bid to acquire the overseas assets of Russia’s Lukoil after the U.S. Treasury Department moved to block the deal, citing concerns over the firm’s ties to the Kremlin.

The Treasury stated yesterday that the United States would “never” grant a license for Gunvor to operate Lukoil’s assets while Russian President Vladimir Putin “continues the senseless killings” in Ukraine. The proposed acquisition included refineries in Bulgaria and Romania, approximately 2,000 gas stations across Europe and the U.S., and oil and gas projects in Kazakhstan, Iraq, Mexico, and Uzbekistan. This deal’s collapse raises questions about the future of Lukoil’s international presence and potential restructuring of its assets.

Gunvor responded to the Treasury’s comments, calling them “fundamentally misinformed and false,” asserting it has “for more than a decade actively distanced itself from Russian oil trading, sold its Russian assets, and publicly condemned the war in Ukraine.” Despite its disagreement, the trader informed Politico Europe it would withdraw its proposal “in the meantime.” Founded in 2000, Gunvor was once a major exporter of Russian crude, and its history has included ties to individuals close to Putin – a connection the company disputes. You can learn more about the complexities of energy sanctions here.

Kremlin spokesman Dmitry Peskov told business daily RBC that the sale of Lukoil’s assets and peace negotiations with Ukraine were separate issues, adding, “We believe that all legitimate interests of such large international companies…must be respected.” The U.S. sanctions package also targeted state energy giant Rosneft. Lukoil has not yet issued a statement regarding the failed deal.

Officials indicated the U.S. will continue to scrutinize transactions involving Russian assets to ensure compliance with sanctions and prevent financial support for the war in Ukraine.