The United States government has moved to block Russian oil giant Lukoil’s proposed $22bn sale of its foreign assets to Swiss commodities trader Gunvor Group, citing alleged ties to the Kremlin.
In a statement posted on its official X (formerly Twitter) account, the U.S. Treasury Department declared it would “never” authorise Gunvor to operate Lukoil’s assets while Russian President Vladimir Putin “continues the senseless killings” in Ukraine.
Gunvor swiftly rejected the accusation, describing the Treasury’s remarks as “fundamentally misinformed and false.”
The company emphasised that 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.”
In light of the controversy, Gunvor announced it would withdraw its acquisition proposal “in the meantime,” leaving Lukoil in search of a new buyer.
The blocked deal followed a recent wave of U.S. sanctions announced by the White House, which prohibit Lukoil and fellow Russian energy firm Rosneft from conducting international operations starting November 21.
In 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 Switzerland.
The proposed sale included assets spanning 11 countries across the Middle East, North America, Europe, and Africa.
Speculation has since emerged suggesting that Gunvor may have been acting as a temporary custodian for Lukoil’s assets, potentially returning them once the war in Ukraine ends.
However, Gunvor’s billionaire CEO Torbjörn Törnqvist dismissed such claims, stating, “If sanctions are lifted, it is probably a sign that things are on good terms. Right now, we do not deal with Russian companies.”
Gunvor’s historical ties to Russia have long drawn scrutiny. Since Russia’s annexation of Crimea in 2014, the U.S. Treasury has alleged that the company maintained financial links to President Putin.
Its Russian co-founder, Gennady Timchenko—a known associate of Putin—was sanctioned by the U.S. at the time.
However, even before the sanctions were announced, Timchenko sold his 43.6% stake in Gunvor to Törnqvist.
Despite this, suspicions have persisted.
Once the world’s largest exporter of Russian crude, Gunvor has faced intensified Western oversight since the onset of Russia’s military campaign in Ukraine.
As the November 21 sanctions deadline approaches, the company has already ceased operations in several European Union countries.
Meanwhile, governments across Eastern Europe are taking steps to sever ties with Lukoil.
Moldova has announced plans to purchase a network of Lukoil-owned gas stations and a private fuel depot, citing national security concerns.
In Bulgaria, lawmakers are reportedly drafting legislation to seize Lukoil’s refinery—the largest in the Balkans, supplying around 80% of the country’s fuel—with the intention of transferring it to a new owner.