Łukoil has a problem. Gunvor withdrew from acquiring international assets

Gunvor has withdrawn its offer to purchase the international assets of the Russian oil company Lukoil, said company spokesman Seth Pietras in an interview with Politico. The reason is the statement of the US Department of Treasury, which announced that it would not approve this agreement.

Gunvor, a company registered in Cyprus, announced on Thursday evening that it was withdrawing its offer to purchase the international assets of Lukoil. Earlier, the US Treasury Department published a statement on the X platform presenting the position of the American authorities towards the transaction announced a week ago. “President (Donald) Trump has made clear that (Russia's war with Ukraine) must end immediately,” the statement said. “As long as (Russian leader Vladimir) Putin continues his senseless killings, the Kremlin puppet Gunvor will never be allowed to operate and make profits,” the Treasury declared.

Seth Pietras, a spokesman for Gunvor, criticized the position of the American authorities in an interview with Politico. “The Treasury Department's statement is fundamentally erroneous and false,” he argued. “Gunvor has always approached its ownership structure and operations in an open and transparent manner. For over a decade, it has distanced itself from trade with Russia, sold Russian assets and publicly condemned the war in Ukraine,” Pietras added.

Russian oil company Lukoil announced last week that it had decided to sell its overseas assets to oil trading group Gunvor. This decision was made in connection with the latest package of American sanctions imposed on Russia. Already then, the parties agreed on the key terms of the contract, and the Russians agreed not to negotiate with other potential buyers. At the same time, it was recalled that to finalize the transaction, and specifically to conclude a binding agreement, the consent of the Office of Foreign Assets Control (OFAC) operating at the US Department of the Treasury is required, as well as, if necessary, obtaining “other licenses, permits and consents in other countries”.

Gunvor is one of the world's largest traders of crude oil and petroleum products and a significant player in the liquefied natural gas market. One of the founders of the consortium was billionaire Gennady Timchenko, who in March 2014, as a result of the illegal annexation of Ukrainian Crimea by Russia, was included on the United States' sanctions list. The reason for this decision was his close ties with Russian leader Vladimir Putin. Gunvor has no external shareholders. 84.2 percent the shares are held by the second of the company's founders – president Torbjoern Toernqvist. The remaining shares are held in an employee benefit fund.

Lukoil is currently involved in projects in Azerbaijan, Kazakhstan, Uzbekistan, Iraq, Egypt, Cameroon, Nigeria, Ghana, Mexico, the United Arab Emirates and the Republic of Congo. The company also has refineries in Bulgaria, Romania and the Netherlands and almost 2.5 thousand gas stations in various countries, including European Union countries, Georgia and the Balkan countries.

Tomasz Dawid Jędruchów (PAP)

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