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Gunvor Withdraws Offer to Purchase Lukoil’s Foreign Assets

The multinational Swiss energy trader Gunvor announced on Thursday that it is withdrawing its offer to purchase Lukoil’s foreign assets after the U.S. Department of the Treasury signaled its intention to deny it a business license.

Last week, the Russian oil giant Lukoil announced that it had accepted Gunvor’s offer for foreign assets it decided to sell due to U.S. sanctions, with experts estimating that the sale price could be around nine billion dollars.

The conclusion of a binding agreement for the transaction was conditional on Gunvor obtaining a license from the U.S. Department of the Treasury, as well as from authorities in other jurisdictions, the Russian company emphasized at that time.

On Thursday, however, Gunvor withdrew its offer after being labeled a Russian ‘puppet’ by the U.S. Department of the Treasury, signaling that Washington opposes the transaction.

The U.S. Department of the Treasury announced on the social media platform X that President Donald Trump made it clear that the war in Ukraine must be ended immediately.

– As long as (Russian President Vladimir) Putin continues his unreasonable bloodshed, the Kremlin’s puppet, Gunvor, will never receive a license to operate and profit – stated the department’s announcement.

The Swiss company responded with a post on X stating that it ‘withdraws its offer to purchase Lukoil’s foreign assets’.

The statement from the U.S. Department of the Treasury ‘is fundamentally based on inaccurate information and does not reflect the facts’, Reuters quoted from an email by Gunvor’s Director of Corporate Affairs Seth Pietras.

Gunvor hopes for ‘an opportunity to correct the obvious misunderstanding’, Pietras added.

The U.S. Department of the Treasury did not specify which license it was referring to in its announcement on X regarding the denial of Gunvor’s license, notes the Russian news agency TASS.

The Caspian Pipeline Consortium (CPC) and Tengizchevroil, a Kazakh oil company jointly established by Chevron, ExxonMobil, KazMunayGas, and LukArco, are exempt from U.S. sanctions, TASS reports.

British sanctions against Lukoil do not cover the Karachaganak field in Kazakhstan or the Shah Deniz field in the Caspian Sea, the Russian news agency notes.

Lukoil produces about two percent of the world’s oil, and its foreign assets include, among others, a 75 percent stake in the Iraqi oil field West Qurna 2, which is among the largest in the world.

Lukoil’s foreign assets also include the Lukoil Neftohim Burgas refinery in Bulgaria with a processing capacity of 190 thousand barrels of oil per day, and the Petrotel refinery in Romania, where a fire broke out last month. The cause has not yet been clarified.

Along with Hungarian and Slovak refineries, they supply oil to the Turkish STAR refinery, owned by the Azerbaijani state oil company SOCAR.

Lukoil also has stakes in oil terminals and gas station chains across Europe, including 45 gas stations in Croatia. Lukoil Croatia was established in 2007.

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