The Swiss company Gunvor, founded by Swedish billionaire Torbjörn Törnqvist, has reached an agreement to purchase all international assets of Lukoil. This decision was made after the Russian oil conglomerate fell under a new package of sanctions from the United States.
This is reported by Finway
Implications of the Deal for the Oil Market
As part of this large-scale operation, Gunvor will gain control over a vast network of Lukoil’s assets worldwide. Specifically, the list includes gas stations in the Bronx (New York), oil refineries in various European countries, as well as oil fields in the Middle East and Central Asia. Experts estimate the value of Lukoil’s international business to be around 20 billion US dollars.
The History of Gunvor and Challenges for Sanctions Policy
Torbjörn Törnqvist founded Gunvor in 1997 together with Gennady Timchenko, who previously worked as a Soviet official and is considered a close associate of Vladimir Putin. This acquisition has become one of the largest examples of the impact of Western sanctions on the global oil market. The new conditions force sanctioned Russian companies to relinquish their positions to private traders willing to take on political risks in exchange for lucrative assets.
At the same time, the deal requires approval from regulators in the US and the UK, making it a test for Western sanctions policy: will they allow a company with a complicated “Russian past” to become the main beneficiary of these sanctions.