Energy trading firm Gunvor Group has withdrawn its bid to acquire Russian oil giant Lukoil’s international operations, citing a warning issued by the U.S. Treasury Department.
The decision comes less than a month after reports emerged that Gunvor, a multinational commodity trader, had offered to buy Lukoil’s overseas assets in a deal worth an estimated $22 billion. The deal would have included Finnish oil company Teboil, which is currently owned by Lukoil.
The U.S. Treasury, under President Donald Trump, made clear last week that the acquisition would not receive regulatory approval.
In a post on social media platform X, the department said Gunvor would be denied an operating licence if the deal went ahead.
“President Trump has made it clear: the war must end immediately. As long as Vladimir Putin continues senseless killing, Kremlin puppet Gunvor will not be allowed to operate or profit,” the department stated.
Gunvor responded by announcing the withdrawal of its offer. Company spokesperson Seth Pietras told Reuters in an emailed comment that the U.S. statement was “fundamentally incorrect and false,” but confirmed that the company was stepping back from the acquisition.
The proposed transaction had already drawn attention due to Gunvor’s past connections to the Russian leadership. One of Gunvor’s co-founders, Gennady Timchenko, is a close associate of Putin and remains subject to European Union sanctions. Although he sold his stake in Gunvor in 2014, questions over the company’s links to Moscow have persisted.
The Financial Times and Reuters were first to report the cancellation.
HT
