Russia’s second-largest oil company, Lukoil, has made a dramatic move in the face of mounting Western sanctions, announcing on October 30, 2025, that it has accepted an offer from global commodity trader Gunvor to acquire its sprawling international assets. This decision, reported by Reuters and confirmed by multiple major outlets, marks the most consequential action yet by a Russian corporate giant in direct response to the latest round of U.S. sanctions triggered by Russia’s ongoing war in Ukraine.
Lukoil, known as Russia’s most internationally diverse oil company, disclosed that it has committed not to negotiate with any other potential buyers. The deal, if completed, would see a vast network of oil fields, refineries, and gas stations—stretching across more than 30 countries—transferred to Gunvor, a Swiss-based firm that has risen to become one of the world’s leading independent commodity traders.
“The key terms of the transaction have been earlier agreed by the parties. On its side, (Lukoil) accepted the offer, having undertaken not to negotiate with other potential buyers,” Lukoil stated, as quoted by Reuters. The company further clarified that the sale was prompted by “restrictive measures of some states introduced against the company and its subsidiaries.”
The timing of Lukoil’s announcement is no coincidence. Just a week prior, the United States imposed fresh sanctions on the oil giant, citing Russia’s lack of serious commitment to a peace process to end the war in Ukraine. According to the U.S. Treasury, the sanctions package, unveiled on October 22, 2025, gave Lukoil and fellow Russian oil titan Rosneft one month to shutter their international operations or face severe penalties. The U.S. Treasury Department subsequently issued a license allowing companies until November 21 to finalize any transactions involving Lukoil and Rosneft. If necessary, the parties may apply for an extension, Lukoil has indicated.
However, the completion of the Lukoil-Gunvor transaction is not a foregone conclusion. The entire deal remains subject to the approval of the U.S. Treasury’s Office of Foreign Assets Control (OFAC), as reported by Reuters. Gunvor has confirmed its involvement and ongoing talks with Lukoil regarding the acquisition of these foreign assets.
The sheer scale of what is at stake is remarkable. Lukoil accounts for about 2% of global oil output, and its international operations are vast and varied. Its largest foreign asset is a 75% stake in Iraq’s West Qurna 2 oil field, one of the world’s largest, which was producing more than 480,000 barrels per day as of April 2025, according to Russia’s Interfax news agency. In Europe, Lukoil owns the 190,000 barrels per day Neftohim Burgas refinery in Bulgaria—the largest in the Balkans—as well as the Petrotel refinery in Romania. The company supplies oil to Hungary and Slovakia, along with Turkey’s STAR refinery, which is owned by Azerbaijan’s state oil company SOCAR and heavily reliant on Russian crude. Lukoil also maintains stakes in oil terminals and retail fuel chains across Europe, not to mention upstream and downstream projects in Central Asia, Africa, and Latin America. In total, the company operates roughly 5,000 petrol stations worldwide.
Gunvor, for its part, has a storied history intertwined with Russian oil. The trading house rose to prominence in the 2000s as the world’s largest trader of Russian crude, and it has benefited handsomely from the surge in oil and gas prices that followed Russia’s 2022 full-scale invasion of Ukraine. That price rally, coupled with Europe’s urgent push to reduce its reliance on Russian energy, has brought windfall profits to Gunvor and its peers, including Vitol and Trafigura. These gains have enabled them to acquire a range of assets, from refineries and oil fields to power plants and wind farms.
It’s worth recalling that Gunvor’s early shareholders included Gennady Timchenko, a close ally of Russian President Vladimir Putin. Timchenko was forced to divest his stake in 2014 after being targeted by U.S. sanctions in the wake of Russia’s attempted annexation of Crimea. Gunvor, now headquartered in Geneva, has since sought to distance itself from Russian political influence, though its legacy remains a point of interest for Western regulators and market watchers alike.
The deal’s significance extends beyond the immediate parties. The planned sale is being watched closely as a bellwether for how Russian companies might navigate the tightening noose of Western sanctions. According to the Financial Times and Bloomberg, this is the most substantial action yet by a major Russian corporation in direct response to the economic pressure campaign that has accompanied the war in Ukraine. For Lukoil, the sale appears to be a last-ditch attempt to preserve value and maintain some continuity for its international operations, even as the company’s options dwindle under the weight of global restrictions.
Meanwhile, the U.S. has shown some flexibility in its sanctions regime, temporarily pausing measures targeting two German-based subsidiaries of Rosneft after receiving assurances from the German government that these entities are no longer under Russian control. Such moves underscore the complexity of unwinding Russian energy interests from the global market, especially in Europe, where dependence on Russian oil and gas has been a persistent concern since the start of the war.
The value and precise timeline of the Lukoil-Gunvor deal have not been disclosed, with both sides remaining tight-lipped as negotiations continue and regulatory hurdles loom. Still, the key terms have reportedly been agreed, and both parties are moving forward with the intent to close before the U.S. Treasury’s November 21 deadline—or to seek an extension if needed.
For Lukoil and Rosneft, the stakes are existential. Together, the two companies account for about two-thirds of Moscow’s crude oil exports, making their fate a matter of national—and international—interest. As the world waits for OFAC’s decision, the outcome of this high-stakes transaction could set a precedent for other Russian firms facing similar pressures in the months ahead.
In the shifting landscape of global energy, Lukoil’s move to offload its international empire to Gunvor is a striking sign of the times: a major reshuffling of assets, alliances, and ambitions, all under the shadow of war and sanctions. The world’s energy markets—and its geopolitics—may never be quite the same.
