Released November 10, 2025 | SUGAR LAND
en
Written by Paul Wiseman, and Brian Ford, IIR Editor-in-Chief
The turn of events occurred on November 6 when the U.S. Treasury Department, alluding to Russia's ongoing war with Ukraine, said on the social media platform X that "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."
On the same day, Guvnor wrote on X that the Treasury Department's statement was "fundamentally misinformed and false. Gunvor is and has always been open and transparent about its ownership and business, and has for more than a decade actively distanced itself from Russia, stopped trading in line with sanctions, sold off Russian assets, and publicly condemned the war in Ukraine. We welcome the opportunity to ensure this clear misunderstanding is corrected. In the meantime, Gunvor withdraws its proposal for Lukoil's international assets."
On October 30, Lukoil said it had accepted an offer from Gunvor to purchase Lukoil's international subsidiary, subject to obtaining permission from the U.S. Treasury's Office of Foreign Assets Control (OFAC).
Lukoil, named for the first letter in three oil towns in western Siberia--Langepas, Urai and Kogalym--accounts for about 2% of world oil output. Its operations outside of Russia account for 0.5% of world output, according to Reuters.
Industrial Info is tracking 101 operational plants that are linked to Lukoil globally. Forty-two of the plants are located outside Russia. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can view a list of detailed plant profiles.
Its foreign assets include refineries in Europe, shares in oilfields in Kazakhstan, Uzbekistan, Iraq and United Arab Emirates, plus hundreds of retail fuel stations around the world.
Click on the image at right for a chart showing Lukoil's plant count by country.
Gunvor also has offices across the world, but they are mostly focused on commodity markets.
Lukoil has dozens of projects that are shared with companies like Chevron (Houston, Texas) BP Plc. (London, England), Eni (Rome, Italy) and Shell (London). According to Reuters, many of those projects give those partners first option to buy the assets if any partner--including Lukoil--chooses to sell out.
While no firm price was announced, Lukoil International GmbH's 2024 financial report showed equity of US$22 billion, while Gunvor's reported 2024 equity was US$6.8 billion. Few of Gunvor's assets are tangible, being mostly in cash. Gunvor would have had to borrow or otherwise raise approximately $18 billion, amounting to many times its current assets, to complete the deal.
Founded in 2000, Gunvor has made its mark on international trading of oil and gas. With 2,000 employees across the world in places like Houston, Singapore and elsewhere, the company reports contracts for 3.2 million barrels per day of liquids transfer. It is among the world's largest crude oil traders.
Guvnor and Lukoil have had significant connections. Gunvor, as the world's largest trader in Russian oil, has significantly profited from Lukoil's production in the last 20 years. During much of that time Gunvor Chief Executive Officer Torbjorn Tornqvist co-owned the company with Gennady Timchenko, who had close connections with Russian President Vladimir Putin, according to Reuters. Timchenko sold his share in 2014 when the U.S. imposed sanctions on him.
Key Takeaways
Summary
Gunvor withdrew its offer to purchase the international assets of Russia's Lukoil after the U.S. Treasury called Gunvor "the Kremlin's puppet" and said it would never get a license to operate Lukoil's assets.The Deal is Undone
Commodity trader Gunvor Group (Geneva, Switzerland) abruptly pulled its offer to purchase Russian oil producer Lukoil PJSC's (Moscow) international assets last week after the U.S. government said it would never accept the deal, calling Gunvor "the Kremlin's puppet."The turn of events occurred on November 6 when the U.S. Treasury Department, alluding to Russia's ongoing war with Ukraine, said on the social media platform X that "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."
On the same day, Guvnor wrote on X that the Treasury Department's statement was "fundamentally misinformed and false. Gunvor is and has always been open and transparent about its ownership and business, and has for more than a decade actively distanced itself from Russia, stopped trading in line with sanctions, sold off Russian assets, and publicly condemned the war in Ukraine. We welcome the opportunity to ensure this clear misunderstanding is corrected. In the meantime, Gunvor withdraws its proposal for Lukoil's international assets."
The Background
On October 27, five days after President Donald Trump announced sanctions on Lukoil and PJSC Rosneft Oil Company (Moscow), due to the nation's Ukrainian military activity, Lukoil, announced its intention to sell foreign assets. Great Britain had had also sanctioned Russia's two largest oil companies.On October 30, Lukoil said it had accepted an offer from Gunvor to purchase Lukoil's international subsidiary, subject to obtaining permission from the U.S. Treasury's Office of Foreign Assets Control (OFAC).
Lukoil, named for the first letter in three oil towns in western Siberia--Langepas, Urai and Kogalym--accounts for about 2% of world oil output. Its operations outside of Russia account for 0.5% of world output, according to Reuters.
Industrial Info is tracking 101 operational plants that are linked to Lukoil globally. Forty-two of the plants are located outside Russia. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can view a list of detailed plant profiles.
Its foreign assets include refineries in Europe, shares in oilfields in Kazakhstan, Uzbekistan, Iraq and United Arab Emirates, plus hundreds of retail fuel stations around the world.
Gunvor also has offices across the world, but they are mostly focused on commodity markets.
Lukoil has dozens of projects that are shared with companies like Chevron (Houston, Texas) BP Plc. (London, England), Eni (Rome, Italy) and Shell (London). According to Reuters, many of those projects give those partners first option to buy the assets if any partner--including Lukoil--chooses to sell out.
While no firm price was announced, Lukoil International GmbH's 2024 financial report showed equity of US$22 billion, while Gunvor's reported 2024 equity was US$6.8 billion. Few of Gunvor's assets are tangible, being mostly in cash. Gunvor would have had to borrow or otherwise raise approximately $18 billion, amounting to many times its current assets, to complete the deal.
Founded in 2000, Gunvor has made its mark on international trading of oil and gas. With 2,000 employees across the world in places like Houston, Singapore and elsewhere, the company reports contracts for 3.2 million barrels per day of liquids transfer. It is among the world's largest crude oil traders.
Guvnor and Lukoil have had significant connections. Gunvor, as the world's largest trader in Russian oil, has significantly profited from Lukoil's production in the last 20 years. During much of that time Gunvor Chief Executive Officer Torbjorn Tornqvist co-owned the company with Gennady Timchenko, who had close connections with Russian President Vladimir Putin, according to Reuters. Timchenko sold his share in 2014 when the U.S. imposed sanctions on him.
Key Takeaways
- Gunvor has backed out from plans to purchase Lukoil's international assets.
- The U.S. Treasury said it would block the sale as long as Russia's war with Ukraine continued.
- Gunvor's previous connection with Lukoil created regulatory concerns.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
