Western Europe Faces Fuel Risks
Lukoil is divesting its foreign holdings following US sanctions imposed on the company and fellow Russian energy firm Rosneft. Gunvor is currently in talks with US regulators to extend its license to carry out transactions with Lukoil, which is scheduled to expire on November 21.
In an interview with a media outlet on Tuesday, Gunvor’s CEO, Torbjorn Tornqvist, emphasized the urgency of securing permits to complete the deal and avoid disruptions in the market.
“The magnitude of this deal needs regulatory work. It cannot be completed in two weeks,” he noted, explaining that Lukoil’s international operations are now “paralyzed.”
Tornqvist also highlighted the potential human and industrial consequences, saying, “A lot of jobs are at stake and the refining capacity could be very disrupted.”
Among the assets involved are refineries in Romania and Bulgaria, with the Burgas facility in Bulgaria supplying more than two-thirds of the nation’s fuel.
Since reducing Russian fuel imports after the escalation of the Ukraine conflict in 2022, Europe has faced steep increases in energy prices.
The move away from a long-standing supplier has contributed to higher industrial costs and intensified discussions over EU energy independence.
Moscow, meanwhile, has accused Western governments of politicizing energy markets and pushing Europe toward expensive and unreliable alternatives.
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