Swiss commodity trading firm Gunvor has withdrawn its bid to acquire international assets from Russian energy company Lukoil after the US Treasury publicly criticised the deal and signalled its opposition. 

Gunvor’s decision comes after the US Treasury called the company a 'Kremlin puppet'. 

The US Treasury posted on X: “President Trump has been clear that the war must end immediately. 

“As long as (Russian President Vladimir) Putin continues the senseless killings, the Kremlin's puppet, Gunvor, will never get a licence to operate and profit.” 

In response, Gunvor’s corporate affairs director, Seth Pietras, said in an email to Reuters: “Treasury’s statement was fundamentally misinformed and false", and that it welcomed the opportunity to "ensure this clear misunderstanding is corrected”. 

“In the meantime, Gunvor withdraws its proposal for Lukoil’s international assets,” Pietras added. 

Moscow-based Lukoil faces pressure to divest its foreign holdings by 21 November, a deadline set by the US Treasury for companies to cease business with the sanctioned Russian company. 

The US Treasury imposed sanctions on Lukoil, Russia’s second-largest oil producer, last month to reduce the country’s revenues amid the war in Ukraine. 

Following the imposition of sanctions, Lukoil had accepted Gunvor’s offer to buy its international subsidiary, Lukoil International. 

Lukoil International manages the group’s assets, including oilfields in Kazakhstan, Uzbekistan, Iraq and Mexico, refineries in Europe and a network of retail fuel stations. 

The principal terms of the transaction had been agreed, and Lukoil had paused negotiations with other potential buyers pending regulatory approval. 

Gunvor’s acquisition would have required authorisation from the US Office of Foreign Assets Control and other relevant regulatory bodies.