Lukoil has moved to sell its overseas assets to the Swiss-based Gunvor in response to the latest US sanctions
Western Europe risks fuel supply disruptions and job losses if a proposed $22 billion acquisition of Russian oil major Lukoil’s international assets does not go through, the intended purchaser, Swiss trader Gunvor, has warned.
Lukoil is divesting its overseas holdings after the US imposed sanctions on the company and Russian energy major, Rosneft. Gunvor is currently negotiating with US regulators to extend its license to conduct transactions with Lukoil, which is set to expire on November 21.
Speaking to Financial Times on Tuesday, the trader’s CEO, Torbjorn Tornqvist, said the company urgently needs permits to finalize the deal and prevent market shocks.
“The magnitude of this deal needs regulatory work. It cannot be completed in two weeks,” he said, adding that Lukoil’s international operations are now “paralyzed.”
“A lot of jobs are at stake and the refining capacity could be very disrupted,” Tornqvist warned.
The assets include refineries in Romania and Bulgaria – the latter of which, the Burgas plant, supplies over two-thirds of the country’s fuel.
Europe has faced sharp energy price spikes since cutting Russian fuel imports after the escalation of the Ukraine conflict in 2022. The shift away from a long‑time supplier has fueled higher industrial costs and debates over EU energy independence. Moscow has accused Western governments of politicizing energy markets and driving Europe toward costly, unreliable alternatives.
The rapid announcement of the deal has raised questions among rivals about how Gunvor, with an equity value of $6.6 billion, can afford the purchase, FT noted. A source close to the trader suggested a structure with no upfront payment, where funds for Lukoil are held in escrow until sanctions are lifted.
This has fueled speculation that Gunvor may be acting as a temporary custodian. A consultant to Russian energy firms told FT, “There will be a buyback clause,” a view echoed by another industry source who said Lukoil would likely keep running the assets.
However, in a separate interview with Bloomberg, Tornqvist dismissed the possibility of selling any assets back if sanctions on Lukoil are lifted.
