Gunvor Halts Bid for Lukoil Amid U.S. Sanctions

Swiss commodity trader Gunvor withdrew its proposal to acquire foreign assets of Russian energy giant Lukoil after the U.S. Treasury labeled it as Russia's 'puppet.' This decision highlights the impact of U.S. sanctions in isolating Russia economically. Lukoil now faces a tight deadline to sell its foreign holdings.

Swiss commodity giant Gunvor has withdrawn its proposal to acquire foreign assets from the Russian energy company Lukoil, following a critical stance from the U.S. Treasury. Washington referred to Gunvor as a 'puppet' of Russia, opposing the acquisition amidst concerns over ongoing conflicts in Ukraine.

The U.S. Treasury's statement emphasized President Donald Trump's firm resolve that the war must stop, casting doubt on Gunvor's operations and profits unless the situation changes. Gunvor has refuted these assertions, claiming the U.S. stance is 'misinformed and false,' as they step back from the acquisition process.

With a U.S. deadline looming, Lukoil faces pressure to sell its overseas assets. The sanctions on Russia's second-largest oil firm are part of broader efforts to curb revenue streams fueling the conflict. Lukoil's assets span refineries in Europe and stakes in oilfields across various countries, awaiting potential buyers under challenging conditions.

(With inputs from agencies.)