Gunvor to purchase Lukoil’s global assets

Swiss energy and commodities trading firm Gunvor Group is set to acquire the overseas assets of Russia’s Lukoil, following the recent US sanctions imposed on the company in response to the ongoing conflict in Ukraine.

IMAGE: Getty Images

Earlier this week, Lukoil confirmed considering bids from potential buyers to sell its assets under the US Treasury Department’s Office of Foreign Assets Control's (OFAC) wind-down license.

Gunvor Group has offered to purchase Lukoil's international operations, and the latter has "accepted the offer, having undertaken not to negotiate with other potential buyers," Lukoil said in a statement.

“If necessary, the parties [Gunvor and Lukoil] plan to apply for extension of the existing OFAC license and any additional licenses to ensure uninterrupted operations of international assets,” Lukoil said.

The move comes in the wake of US sanctions unveiled last week, targeting Rosneft and Lukoil – Russia's two largest oil producers.

Washington has set a deadline of 21 November for other companies to “wind down” their existing transactions with the sanctioned Russian firms and their subsidiaries.

The US announced sanctions a week after the UK said it will step up sanctions on Lukoil and Rosneft and target 44 shadow fleet tankers transporting oil for Russian companies.

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online