European countries could face job losses and fuel supply disruptions if Swiss commodities trader Gunvor Group fails to acquire Lukoil's foreign assets subsidiary Lukoil International GmbH, said Gunvor’s CEO, Torbjorn Tornqvist, APA-Economics reports, citing foreign media.
“The scope and scale of this deal require regulatory work. It is not possible to complete it in two weeks. All of Lukoil’s international operations are paralyzed. No one can transact with them. Thousands of jobs are at risk, and refining capacity could be seriously disrupted,” Torbjorn Tornqvist noted.
According to him, it is essential to urgently issue permits to prevent disruptions in fuel supply: “The main priority is to ensure the extension of the general operating license.”
Recently, Lukoil officially announced that it has received a formal offer from Gunvor Group to acquire its subsidiary Lukoil International GmbH, which owns its foreign assets. According to the information, Lukoil stated that Gunvor Group has already agreed on the main terms and has committed not to negotiate with other potential buyers.
It should be recalled that on October 22, the U.S. Department of the Treasury imposed sanctions on Lukoil and its subsidiaries in which it owns more than 50% of shares. All transactions with them must be completed by November 21. The European Union, on the other hand, imposed restrictions on Lukoil’s Dubai-based trading unit Litasco Middle East DMCC as part of the 19th sanctions package announced on October 23.
