EditGunvor withdraws bid to buy Russian Lukoil assets after US calls it ‘Kremlin’s puppet’
The move underscores Washington's attempt to use sanctions to isolate Russia and choke revenues it uses to fight the war in Ukraine
Swiss commodity trader Gunvor said on Thursday it has withdrawn its proposal to buy foreign assets of Russian energy company Lukoil after the U.S. Treasury called it Russia’s “puppet” and signalled Washington opposed the deal.
The move scuttles what would have been Gunvor’s largest acquisition and underscores Washington’s attempt to use sanctions to isolate Russia and choke revenues it uses to fight the war in Ukraine.
The U.S. Treasury said in a post on X that President Donald Trump “has been clear that the war must end immediately. As long as (Russian President Vladimir) Putin continues the senseless killings, the Kremlin’s puppet, Gunvor, will never get a license to operate and profit.”
President Trump has been clear that the war must end immediately. As long as Putin continues the senseless killings, the Kremlin’s puppet, Gunvor, will never get a license to operate and profit.
— Treasury Department (@USTreasury) November 6, 2025
Seth Pietras, Gunvor’s corporate affairs director, said in an email that Treasury’s statement was “fundamentally misinformed and false” and it welcomed “the opportunity to ensure this clear misunderstanding is corrected.”
“In the meantime, Gunvor withdraws its proposal for Lukoil’s international assets,” Pietras said.
Treasury imposed sanctions on Lukoil last month in an effort to cut Russia’s revenues used in fighting the war.
After Treasury imposed sanctions on Russia’s second-largest oil company in October, Lukoil said it had accepted an offer from Gunvor to buy its foreign assets.
Breaking: Lukoil agrees to sell overseas empire to Gunvor to dodge U.S. sanctions
The assets include refineries in Europe, shares in oilfields in Kazakhstan, Uzbekistan, Iraq and Mexico, and hundreds of retail fuel stations around the world.
Treasury’s input on the deal is important because it can issue licenses, or waivers, allowing transactions related to the sanctions.
Even before the withdrawal, bankers and insiders said Gunvor’s biggest acquisition target to date would be difficult to complete because it was far beyond the commodity trader’s borrowing capacity.
A confluence of U.S. sanctions on Russian-owned refineries, mysterious explosions at key facilities, and lack of strategy threatens to unleash widespread fuel shortages, skyrocketing prices, and regional instability in Eastern Europe.
Eastern Europe’s looming fuel crisis: sanctions, sabotage, and lack of strategy
With Reuters.
Caption: Gas station pumps wait to be used at a Lukoil gas station in Skopje, Republic of North Macedonia, 28 October 2025. In North Macedonia, Lukoil Macedonia operates 40 fuel stations and an oil storage facility. EPA/GEORGI LICOVSKI
Updated: November 7, 2025 - 06:28
