(MENAFN) Gunvor Group has scrapped its bid to purchase international holdings of Russian oil giant Lukoil following Washington's allegations linking the energy trader to the Kremlin.

The Swiss-based trading house announced the withdrawal Friday, just days after revealing the acquisition plan. The proposal surfaced shortly after US President Donald Trump rolled out fresh sanctions targeting Lukoil and fellow Russian petroleum company Rosneft. Trump characterized the restrictions as tactics designed to intensify pressure on Moscow toward ending the Ukraine war.

Gunvor's retreat followed a stark warning Thursday from the US Treasury, which declared the trader "will never get a license to operate and profit" during the ongoing Ukraine conflict. The firm fired back, labeling the Treasury's position "fundamentally misinformed and false," and emphasized its years-long separation from Russian operations.

"Gunvor has for more than a decade actively distanced itself from Russia, stopped trading in line with sanctions, sold off Russian assets, and publicly condemned the war in Ukraine," the company stated.

Kremlin spokesperson Dmitry Peskov weighed in, noting that while private business transactions don't fall under direct Russian government purview, the situation underscores how "illegal trade restrictions" from the US remain "unacceptable and hurt international trade."

Media reported that Gunvor had engaged in talks with the US Office of Foreign Assets Control (OFAC), housed within the Department of the Treasury, alongside other Trump administration entities to advocate for the takeover.

Chief Executive Torbjorn Tornqvist had publicly advocated that such an acquisition would deliver a "clean break" for Lukoil's overseas operations. The company had reportedly secured approximately $2.8 billion in financing before abandoning the transaction.

Geneva-headquartered Gunvor was established in 2000 by Tornqvist and Russian businessman Gennady Timchenko. Timchenko divested his ownership in 2014 after Washington imposed individual sanctions against him.

Privately held Lukoil ranks as Russia's second-largest petroleum producer, with global operations spanning multiple continents, including the United States.

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