Lukoil’s network in Finland announces suspension of operations due to US sanctions
8 November 09:15
The Teboil gas station chain, owned by the Russian company Lukoil, is shutting down operations in Finland due to US sanctions.
This was stated by Teboil’s Director of Marketing and Communications Tony Flickt, according to Helsingin Sanomat, "Komersant Ukrainian" reports.
Flikt said that fuel supplies and payment transactions of the company have already been suspended. According to him, some stations have already run out of certain types of fuel, and their number continues to increase.
“There will be no new fuel supplies, and the tanks at the gas stations will be empty,” he emphasized. When asked about the possibility of preserving the brand in the future, Flickt replied: “At the moment it is not relevant.”
Although Teboil technically has until November 21, the deadline given by the US authorities to sever ties with the sanctioned company, fuel supplier Neste and banks have already suspended cooperation with the chain, the newspaper notes.
Other foreign divisions of Lukoil have also faced problems due to the sanctions. In particular, the company will be forced to cease operations in Moldova as of November 21 due to the restrictions, according to Energy Minister Dorin Iungetu. According to him, the Moldovan government intends to buy out some of Lukoil’s assets to ensure the smooth operation of the airport in Chisinau.
“The government’s Investment Council has proposed to buy out Lukoil’s fuel depot at the airport so that the state can take control of the company’s infrastructure. The deal must be finalized by November 17, as Lukoil will lose the ability to operate from November 21,” the minister said.
Washington imposed sanctions against Lukoil and Rosneft and their subsidiaries on October 22 in response to Moscow’s refusal to end the war in Ukraine. The U.S. Treasury Department gave the partners of both companies one month to wind down their cooperation. After that, Russian oil in Asia fell sharply, and Lukoil began selling off its foreign assets. According to Bloomberg, Russian oil exports dropped by 20% in the week from October 27 to November 2, the most significant drop in almost two years.
Meanwhile, Gunvor, an international oil trader founded in 1997 by Swedish businessman Thorbjorn Thornqvist and Russian billionaire Gennady Timchenko, who is close to Vladimir Putin, announced its intention to buy Lukoil’s foreign assets. It was about dozens of companies involved in the production, refining and sale of fuel in 11 countries with a total value of about $21 billion. However, Gunvor needs to obtain approval from the US Treasury to conclude the deal.
The U.S. authorities have begun investigating the trader’s ties to the Russian leadership and, as a result, refused to issue a license to purchase the assets. A statement from the US Treasury Department reads:
“President Donald Trump has made it clear that the war in Ukraine must end immediately. As long as Vladimir Putin continues his senseless killing spree, the Kremlin’s puppet, Gunvor, will never be licensed to operate and make a profit.”
An hour after this statement, Gunvor officially withdrew its offer to buy Lukoil’s foreign assets.
