Spain’s Banco Santander SA has withdrawn its funding commitments from Gunvor Group, marking the first tangible financial repercussion for the Swiss-based commodity trading house after the US Treasury labeled it “the Kremlin’s puppet” in a public social media post last week. This move, which became public on November 14, 2025, comes as the global energy sector reels from a string of sanctions and diplomatic volleys targeting major Russian oil interests.
Santander’s decision, while significant, is just one piece of a much larger puzzle. According to sources familiar with the matter, Santander is only one among dozens of banks that provide financial backing to Gunvor. Yet, its withdrawal is the first clear sign that the Treasury’s sharp rhetoric is starting to bite. The US government’s comments sent shockwaves through the energy markets, raising questions about the future of Russian-linked trading houses and their access to global finance. As one observer put it, "The US Treasury’s statement has clearly changed the calculus for Gunvor’s lenders."
But Gunvor isn’t the only Russian-affiliated player caught in the crosshairs. Lukoil PJSC, Russia’s second-largest oil producer, has begun shedding staff across its international trading operations in anticipation of imminent US sanctions. In the days leading up to the new measures, employees in Geneva, Dubai, and Singapore received termination offers, with many already signing agreements to leave. Operations in at least two of these key locations are winding down, according to individuals with direct knowledge of the process.
The impact on Lukoil’s trading arms is expected to be considerable. The looming US sanctions will make it exceedingly difficult for these entities to operate in markets that rely heavily on US dollar transactions, letters of credit from global banks, and the trust of counterparties. In a world where confidence is currency, even a whiff of association with sanctioned Russian firms can be enough to freeze deals and dry up credit lines.
Sanctions have already prompted other commodity dealers and bankers to steer clear of Litasco, Lukoil’s Geneva-headquartered trading arm. Employees at Litasco, which operates across Europe and the United States, are reportedly signing mutually agreed termination contracts. The uncertainty extends to Dubai-based Alghaf Marine DMCC—Litasco’s successor in the Middle East—where staff are also facing termination, and to LMT Energy Asia Pacific, Litasco’s Asian unit, where buyouts were offered on November 13, 2025.
Neither Litasco nor Lukoil responded to requests for comment, leaving employees and markets alike to speculate about the scale and permanence of these changes. The move to shed staff is one of the most visible effects yet of the incoming US sanctions, which are set to reshape the landscape for Russian oil trading worldwide.
The fallout doesn’t end there. Lukoil has recently declared force majeure on oil shipments from its giant West Qurna 2 field in Iraq, a move that signals the extent of operational disruption. In Romania, the situation has become even more fraught: the country’s president has openly stated that Romania may temporarily take control of Lukoil’s local assets in response to the growing uncertainty.
The collapse of a deal to buy Lukoil’s international assets underscores the far-reaching consequences of the US Treasury’s public denunciation of Gunvor. The transaction, which would have seen Gunvor acquire a significant portion of Lukoil’s overseas holdings, was abruptly abandoned after the US government’s social media post. As Bloomberg reported, the Treasury’s description of Gunvor as “the Kremlin’s puppet” was enough to derail negotiations and spook financial backers.
Founded in 2000, Litasco has long been a prominent player in the global crude oil, petroleum product, gas, and biofuel markets. According to its 2023 sustainability report, the Litasco Group—which includes various national retail and refining entities—carries out trading activities worldwide and had assets in 14 countries as of last year. The group’s global reach has made it a vital cog in the machinery of Russian energy exports, but also a prime target for Western sanctions seeking to curtail Moscow’s influence and revenue streams.
The timing of these developments is no coincidence. The US and its allies have been steadily ratcheting up economic pressure on Russian energy firms since the start of the Ukraine conflict, aiming to weaken the Kremlin’s war chest and limit its ability to fund military operations. The latest round of sanctions represents a new phase in this campaign, targeting not just the producers themselves but the intricate web of traders, financiers, and intermediaries that facilitate the flow of Russian oil to global markets.
For Gunvor, the loss of Santander’s support is a warning shot. While the company’s other lenders remain publicly supportive for now, the episode highlights the fragility of such arrangements in the face of coordinated political and regulatory action. Industry insiders say that if more banks follow Santander’s lead, Gunvor could find itself squeezed out of key markets or forced to pay significantly higher costs to secure funding.
Meanwhile, the rapid downsizing at Lukoil’s trading arms raises questions about the company’s long-term strategy. Can Lukoil pivot to alternative markets or currencies, or will it be forced to scale back its international ambitions? For employees, the uncertainty is palpable. "It’s hard to see where the next job will come from," said one staff member who recently accepted a buyout.
The broader message from Washington is clear: the US intends to make it as difficult as possible for Russian energy firms and their partners to operate on the world stage. By targeting not just the companies but their financial lifelines and trading partners, the sanctions regime aims to isolate Moscow and disrupt its most lucrative sector.
As the dust settles, the global energy market will be watching closely to see which firms adapt—and which are left behind. For now, the story of Gunvor, Lukoil, and their shrinking circle of allies is a cautionary tale about the power of words, the reach of sanctions, and the unpredictable currents of geopolitics.
