Blocking Lukoil’s assets can affect fuel supplies, jobs—Trader
(MENAFN) Western Europe could face fuel supply disruptions and job losses if the proposed $22 billion acquisition of Lukoil’s international assets fails to proceed, Swiss commodities trader Gunvor warned on Tuesday.
Lukoil is seeking to divest its overseas holdings following US sanctions on Russian energy firms, including Rosneft. Gunvor is currently negotiating with US regulators to extend its license to conduct transactions with Lukoil, which is due to expire on November 21.
Gunvor CEO Torbjörn Törnqvist told the Financial Times that the company urgently requires regulatory approval to complete the purchase and prevent market disruptions.
“The magnitude of this deal needs regulatory work. It cannot be completed in two weeks,” Törnqvist said, warning that Lukoil’s foreign operations are now “paralyzed.”
“A lot of jobs are at stake, and refining capacity could be very disrupted,” he added.
The assets under negotiation include refineries in Romania and Bulgaria, notably the Burgas plant, which provides more than two-thirds of Bulgaria’s fuel supply.
Europe has faced soaring energy prices since slashing Russian fuel imports in 2022 amid the Ukraine conflict, a move that has intensified debates over EU energy independence. Moscow has accused Western nations of politicizing energy markets and driving Europe toward costly, unstable alternatives.
The deal’s structure has prompted skepticism among competitors, with some questioning how Gunvor—valued at about $6.6 billion—can finance such a purchase. A source cited by a newspaper suggested the transaction may involve no upfront payment, with proceeds held in escrow until sanctions are lifted.
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