Lukoil’s sanctions deal collapses: What does it mean?
Hello! Welcome to your weekly guide to the Russian economy, written by Alexander Kolyandr and Alexandra Prokopenko and brought to you by The Bell. This week we analyze the implications of Washington blocking a multi-billion-euro deal involving sanctioned Russian oil giant Lukoil, and a partial climbdown by the government over its controversial tax hikes.
US blocks ‘Kremlin puppet’ from Lukoil deal
Swiss Commodity trader Gunvor’s bid for Lukoil’s foreign assets, worth around $20 billion, collapsed after the US Treasury Department dubbed the company a “Kremlin puppet.” As The Bell explains, this saga is about much more than just the fate of Lukoil’s foreign assets or the future of Gunvor.
What’s going on?
Late Thursday in one short post on X, the US Treasury killed Gunvor’s hopes of swooping to take over Lukoil’s foreign assets after the Russian oil giant was hit with sanctions. “As long as Putin continues the senseless killings, the Kremlin’s puppet, Gunvor, will never get a license to operate and profit,” it said. The department has made no further comments on the issue and not issued any statements since.
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