Swiss commodities trading giant Gunvor has abruptly abandoned its bid to acquire the international assets of Russian oil powerhouse Lukoil, following a dramatic and highly public spat with the U.S. Treasury Department. The move, announced on November 7, 2025, via the social media platform X, marks a significant escalation in the West’s efforts to economically isolate Russia amid the ongoing war in Ukraine, and underscores the immense pressure facing companies with any perceived ties to Moscow.
The deal in question, which Lukoil itself had announced just a week prior, would have marked Gunvor’s largest acquisition in its history. Lukoil, Russia’s second-largest oil producer, is currently under intense pressure to divest its foreign holdings as a direct result of U.S. sanctions imposed in October 2025. These sanctions are part of Washington’s broader campaign to cut off revenue streams that could be used to fund Russia’s war effort in Ukraine, which began with the invasion ordered by Russian President Vladimir Putin in February 2022.
According to Reuters, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) had set a strict deadline of November 21 for all firms to wind down business with Lukoil. This left the Moscow-headquartered company racing against time to find buyers for its extensive portfolio of foreign assets. These include refineries in Bulgaria and Romania, a 45% stake in a refinery in the Netherlands, oil and gas projects in 11 countries—including Kazakhstan, Uzbekistan, Iraq, and Mexico—and hundreds of gas stations scattered across the globe.
But just as the Gunvor-Lukoil deal seemed to be progressing, the U.S. Treasury Department intervened with a strongly worded post on X. The message referenced both the ongoing conflict in Ukraine and the diplomatic efforts of U.S. President Donald Trump to bring the war to a close. “President Trump has been clear that the war must end immediately,” the Treasury’s statement read. “As long as Putin continues the senseless killings, the Kremlin’s puppet, Gunvor, will never get a license to operate and profit.”
The accusation that Gunvor was acting as “the Kremlin’s puppet” was met with immediate and forceful pushback from the trading firm. In its own statement, also posted on X, Gunvor called the Treasury’s characterization “fundamentally misinformed and false.” The company insisted, “Gunvor is and has always been open and transparent about its ownership and business, and has for more than a decade actively distanced itself from Russia, stopped trading in line with sanctions, sold off Russian assets, and publicly condemned the war in Ukraine.”
Gunvor’s corporate affairs director, Seth Pietras, reiterated this stance in an email to Reuters, emphasizing the firm’s willingness to clear up what it called a “clear misunderstanding.” The statement concluded, “In the meantime, Gunvor withdraws its proposal for Lukoil’s international assets.”
Gunvor’s history, however, has long drawn scrutiny from U.S. authorities and others wary of Russian influence in global energy markets. The company was co-founded by Swedish oil magnate Torbjörn Törnqvist, who remains its chairman, and Gennady Timchenko, an oligarch known for his close ties to President Putin. Gunvor’s headquarters are located in Nicosia, Cyprus, but its main trading office operates out of Geneva.
To address concerns about Russian connections, Gunvor has repeatedly stressed that Timchenko has not been affiliated with the company since March 2014, when he sold his shares to Törnqvist. This sale, Gunvor says, was made in anticipation of “potential economic sanctions” as Russia moved to annex Crimea from Ukraine. Despite these efforts to distance itself, the company remains a lightning rod for controversy whenever Russian assets are involved.
Lukoil’s decision to sell its international assets, meanwhile, is a direct response to the mounting pressure from U.S. sanctions. The goal, as articulated by American officials, is to force Russia toward a ceasefire by targeting the economic foundations of its war machine. According to analysts at brokerage PSB in Moscow, the tight timeline for asset sales could force Lukoil to accept significant discounts and create difficulties in repatriating funds—a scenario that could further weaken Russia’s global energy influence.
Bankers and industry insiders had already expressed skepticism about the feasibility of Gunvor’s bid, noting that the scale of the acquisition was far beyond the company’s normal borrowing capacity. Still, the abrupt withdrawal of the offer—publicly attributed to the U.S. Treasury’s intervention—marks a clear victory for Washington’s sanctions policy, at least in the short term.
As reported by Reuters, the Treasury’s role in such transactions is crucial, as it can issue licenses or waivers that would allow sanctioned deals to proceed. In this case, however, the message was unambiguous: Gunvor would not be granted a license to profit from Lukoil’s assets as long as the war in Ukraine continues and Putin remains intransigent.
For Lukoil, the setback means it must now scramble to find other buyers for its foreign assets—preferably those not subject to U.S. jurisdiction or scrutiny. Analysts at brokerage BCS suggest that Lukoil may now focus on selling assets in which it holds a majority stake, particularly refineries in Bulgaria and Romania and oil projects in Iraq. The company’s international portfolio, once a symbol of Russia’s global oil ambitions, has become a liability under the current sanctions regime.
For Gunvor, the episode is a reminder of the enduring reputational risks that come with any perceived proximity to Russian interests, no matter how distant those ties may be in reality. The company’s insistence on transparency and compliance with sanctions may not be enough to overcome the skepticism of Western regulators and policymakers, especially in a climate where geopolitical tensions are running high.
The collapse of the Gunvor-Lukoil deal also serves as a cautionary tale for other firms considering business with sanctioned Russian entities. As the deadline for winding down transactions with Lukoil looms, the pool of willing and able buyers is likely to shrink even further, potentially driving down asset prices and complicating Russia’s efforts to maintain its energy sector’s global reach.
In the end, the failed deal is emblematic of the broader economic and political struggles playing out on the world stage. With sanctions tightening and diplomatic solutions still elusive, the fates of companies like Gunvor and Lukoil remain tightly bound to the shifting tides of international relations—and, for now, the message from Washington could not be clearer.
