Swiss commodities trader Gunvor has withdrawn its proposal to acquire the foreign assets of Russian oil giant Lukoil, following strong opposition from the U.S. Treasury, which labeled the company a “Kremlin puppet.”
The move ends what would have been Gunvor’s largest acquisition to date and highlights Washington’s continued push to isolate Russia financially amid the ongoing war in Ukraine. The Treasury reaffirmed that the U.S. would block any attempts by Russian-linked firms to profit while President Vladimir Putin continues his military campaign.
Gunvor’s corporate affairs director, Seth Pietras, called the Treasury’s statement “misleading and false,” but confirmed that the company was withdrawing its bid.
The U.S. sanctioned Lukoil last month as part of broader efforts to restrict Russian revenue streams. Gunvor’s offer had included European refineries, oil field stakes in Kazakhstan, Uzbekistan, Iraq, and Mexico, and hundreds of fuel stations worldwide.
Analysts and bankers had already doubted the feasibility of the deal, noting that it exceeded Gunvor’s financial capacity and would likely fail to gain the necessary U.S. Treasury approval, which is required for transactions affected by sanctions.
