The head of Gunvor: If the US does not approve the Lukoil deal, Europe will have problems

The supply of gasoline and diesel fuel in Europe may fail if the US Treasury Department does not approve the sale of Lukoil's international assets. The head of Gunvor, Torbjorn Tornqvist, told The Financial Times about this.

"Europe will face job losses and fuel supply disruptions if the Gunvor deal on Lukoil's foreign assets in the amount of $ 22 billion is blocked," the British edition writes, citing the words of the head of the Swiss trader.

In October, the United States announced new sanctions against Lukoil, which will come into force on November 21.

"The priority is to make sure that the general operating license is renewed. The scale of this transaction requires regulatory work. It cannot be completed in two weeks. All international activities of Lukoil are paralyzed. No one can make transactions with them. A lot of jobs are at stake, and the work of processing facilities can be severely disrupted," said the head of Gunvor.

In Europe, Lukoil owns a network of filling stations and refineries in Bulgaria, Romania and the Netherlands. The plant in Bulgaria provides more than a third of the local market and exports to other EU countries. Sanctions against Lukoil have already caused a stir in the country. The People's Assembly of Bulgaria temporarily banned the export of petroleum products.

A person close to Gunvor told The Financial Times that the deal could be arranged with a "payout structure, without advance payments or financing," and the money intended for Lukoil would be kept in escrow until the sanctions against the Russian group are eventually lifted.

Thorbjorn Turnqvist himself declined to comment on how Gunvor would finance the deal, but said that the firm was not so "reckless" as to go for such a deal without thinking it through thoroughly.

"Obviously, there is a financial aspect. How would I explain this to my banks? They ask the same question. But this is the scope and capabilities of our company. Lukoil also did not He would have cooperated with us if he didn't think we could do it," said the head of Gunvor.

He denies that Lukoil will be able to buy back assets after the lifting of sanctions, as the US government and The UK should be sure that this is a "complete break."

"It is clearly stated that there is absolutely no way to cancel this deal, even if the sanctions are lifted. This is impossible," said Thorbjorn Turnqvist. At the same time, he did not rule out that the trader would resell part of Lukoil's assets.

One of the founders of Gunvor was businessman Gennady Timchenko, but in 2014, before the imposition of sanctions, he sold 43.5% of shares to Torbjorn Tornqvist. Now they have started saying that the Russian businessman could have participated in the organization of the transaction.

"Absolutely not, no way. Gennady Timchenko has nothing to do with Gunvor since he finally gave up his property in 2014," said a representative of Gunvor.

As EADaily reported, one of the largest oil and LNG traders, Gunvor, will buy Lukoil's international assets. The Russian company went on sale after the United States announced sanctions against Lukoil, which will take effect on November 21. Refineries in Europe and mining assets around the world will be sold.

Lukoil announces that it has received a proposal from Gunvor Group Ltd. to acquire LUKOIL International GmbH (a 100% subsidiary of PJSC LUKOIL, which owns the foreign assets of the Lukoil Group). The key terms of the transaction were previously agreed by the parties. PJSC Lukoil, for its part, accepted the offer, pledging not to negotiate with other potential buyers, the Russian company reported.

Lukoil's international assets consist of three refineries in the Netherlands, Bulgaria and Romania, producing projects in Africa, the Middle East, Asia and the The Caucasus. The company also has a network of gas stations in more than 5 thousand, including in the USA.