Gunvor rules out buyback of Lukoil’s foreign assets

 Gunvor Group CEO Torbjörn Törnqvist ruled out any possibility of reselling Lukoil’s overseas assets back to the Russian oil company after a potential deal for Lukoil International GmbH is completed.

“It’s a clean break — once the deal is done, that’s it,” Törnqvist told Bloomberg.

The transaction must undergo regulatory review, as Lukoil is under U.S. sanctions. Gunvor said it is confident the deal complies with all relevant requirements.

The company is in talks with U.S. authorities to extend its license for transactions involving Lukoil, which expires on November 21, and hopes for a six-month extension.

Törnqvist did not rule out the transfer of some of Lukoil’s foreign assets to other companies.

The U.S. Treasury and the U.K. recently expanded sanctions to include Lukoil and its subsidiaries. Following the restrictions, Lukoil announced plans to sell its international assets. On October 30, the company confirmed receiving a takeover offer from Gunvor for Lukoil International GmbH, which holds its foreign operations.