Oil trader Gunvor set to take over Lukoil’s refineries, fuel chains in Southeast Europe

Russian oil producer Lukoil has accepted an offer from global commodities trader Gunvor Group Ltd. to acquire its international assets, which were put up for sale due to sanctions imposed by the United States over the war in Ukraine. The assets include oil refineries in Bulgaria and Romania, as well as fuel retail chains across Southeast Europe.

Lukoil has decided not to negotiate with other potential buyers. It will sell 100% of Lukoil International GmbH, which owns its assets outside of Russia, to Gunvor under key terms agreed earlier, according to an announcement from the Russian company. The value of the transaction was not disclosed.

Lukoil will not negotiate with other potential buyers

To conclude a binding agreement, the buyer needs to obtain permission from the US Office of Foreign Assets Control (OFAC), along with other approvals in relevant jurisdictions, Lukoil said.

If necessary, the two companies will apply for an extension of the existing OFAC license to ensure uninterrupted operations of Lukoil’s international assets and their banking servicing until the completion of the transaction, it added.

Gunvor is owned by Swedish billionaire Torbjörn Törnqvist

According to its website, Gunvor is one of the world’s largest independent commodities trading houses by turnover and a leading global oil trader. The company is majority‑owned by Swedish billionaire Torbjörn Törnqvist.

Lukoil’s facilities up for sale include the largest oil refinery in the Balkans – Lukoil Neftohim Burgas in Bulgaria, as well as the Petrotel-Lukoil refinery in Romania. The Russian company also has fuel retail networks in Romania, Bulgaria, Turkey, North Macedonia, Croatia, Serbia, and Montenegro.

The US sanctions targeting Russian energy companies took effect earlier this month.