Global commodity trading giant Gunvor Group has moved to acquire the international assets of Russian oil major Lukoil in a landmark $22bn deal, marking one of the most significant corporate divestments in the energy sector since the onset of Western sanctions against Russian firms.
Lukoil confirmed on 30 October 2025 that it had accepted Gunvor’s offer to purchase 100% of its international subsidiary, Lukoil International GmbH, which includes assets across Europe, the Middle East, and parts of Africa.
Its African operations cover stakes in multiple exploration and production blocks in Nigeria, Ghana, Egypt, Congo-Brazzaville and Cameroon. Lukoil also had done some exploration work in Sierra Leone but it was not successful.
The deal was announced shortly after the U.S. and UK imposed sweeping sanctions on Lukoil and Rosneft, freezing their assets and barring Western entities from conducting business with them.
The transaction, however, hinges on regulatory approval from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), which must issue a permit for the deal to proceed.
Until then, Lukoil has committed not to engage with other potential buyers.
Gunvor’s acquisition is expected to significantly expand its footprint in the global energy market, particularly in Southeast Europe, where Lukoil has maintained a strong presence.
The deal also marks a strategic pivot for Gunvor, co-founded by Swedish billionaire Torbjörn Törnqvist, as it seeks to capitalise on the reshuffling of Russian energy assets amid geopolitical tensions.
Why the deal must be completed quickly enough
Törnqvist said Gunvor needs US, UK and Swiss regulators to urgently assess whether the deal can stand to avoid delay in ongoing fuel supplies when the new US sanctions on Lukoil and Rosneft come into force by November 21.
“The priority is to make sure the general operating licence is extended. The magnitude of this deal needs regulatory work. It cannot be completed in two weeks,” he told the Financial Times.
“Lukoil’s whole international operations are paralysed. Nobody can transact with them. A lot of jobs are at stake and the refining capacity could be very disrupted.”
He said Europe could face job losses and disruption to its fuel supplies if the deal is blocked.
However, industry analysts view the move as a calculated bet on the long-term value of Lukoil’s non-Russian operations, which include refining, retail, and upstream assets that have remained profitable despite sanctions.
The acquisition could also help Gunvor diversify its portfolio beyond trading into more integrated energy operations.
It could reshape the competitive landscape in Europe’s downstream and midstream sectors, giving Gunvor access to infrastructure and markets previously dominated by Russian players.
For Lukoil, the deal could allow it to consolidate operations within Russia and reduce exposure to regulatory risk.
Could there be more to the deal than meets the eye?
There is still uncertainty whether Gunvor has the funds to close such a high-stakes purchase, given that it had an equity value of only $6.6bn at the end of H1 2025.
One possibility is that the transaction is paid for gradually using earnings from the newly acquired assets.
There is also another speculation that Gunvor may just be acting as a temporary custodian for Lukoil’s assets, which may ultimately be taken back once the war is over.
“There will be a buyback clause, though it may not be written into the official documents,” suggested one senior consultant to Russian energy companies.
This position is also supported by a top manager at a Russian oil company who said he was “sure that is exactly how the deal is structured. Lukoil will keep running the assets operationally”.
When asked if there was the possibility of a buyback by Lukoil, Törnqvist said:
“If sanctions are lifted, it is probably a sign that things are on good terms. Right now, we do not deal with Russian companies.”
Founded in the late 1990s by Törnqvist and Gennady Timchenko, one of Russian President Vladimir Putin’s closest allies, Gunvor has been fingered to have historic ties to the Kremlin.
Following Russia’s annexation of Crimea in 2014, the US alleged that the Russian leader had personal financial interests in the company.
Although Gunvor dismissed the claim as “outrageous”, White House imposed sanctions on Timchenko, who eventually sold his stake in Gunvor to Törnqvist.
Ultimately, the $22bn deal could place Gunvor ahead of giants like Vitol and Trafigura in global commodity trading, if eventually approved.
[…] response, Lukoil had quickly arranged to offload its overseas assets to Gunvor—a transaction that still required regulatory approval from authorities in the U.S., UK and […]