GENEVA – An influential global commodities trading company has abandoned its intention to purchase the overseas operations of Russian oil giant Lukoil, firmly rejecting accusations from the U.S. government that labeled it as “a puppet of the Kremlin.”

Gunvor, a trading firm with its principal office in Geneva, declared via X that it is retracting its bid to acquire Lukoil’s international assets. This announcement follows a recent statement from Lukoil regarding their agreement on the deal, contingent upon several conditions, including obtaining approval from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). The specific terms of the agreement were not disclosed.

On Thursday evening, the U.S. Treasury Department, also on X, referenced Russian President Vladimir Putin’s decision to launch an invasion of Ukraine in February 2022. It also mentioned U.S. President Donald Trump’s efforts to bring an end to the conflict, which has resulted in numerous casualties.

“President Trump has consistently stated that the war must cease immediately,” the department posted. “As long as Putin persists with the needless violence, Gunvor, acting as the Kremlin’s puppet, will not receive a license to operate or profit.”

In response, Gunvor quickly issued a statement on X, countering the Treasury’s claims as “fundamentally misinformed and false.”

“Gunvor is and has always been open and transparent about its ownership and business, and 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 post said.

“We welcome the opportunity to ensure this clear misunderstanding is corrected. In the meantime, Gunvor withdraws its proposal for Lukoil’s international assets,” it added.

Gunvor was founded by Swedish oil magnate Torbjörn Törnqvist, its chairman, and Gennady Timchenko, an oligarch close to Putin. Its headquarters are in Nicosia, Cyprus.

The company says Timchenko is no longer affiliated with Gunvor and his shares, in anticipation of “potential economic sanctions,” were sold to Törnqvist in March 2014 — as Russia moved to annex the Crimean Peninsula from Ukraine.

Lukoil had said it was selling its international assets in response to U.S. sanctions, which aim to push Russia to agree to a ceasefire in its war against Ukraine. The company has stakes in oil and gas projects in 11 countries, refineries in Bulgaria and Romania, and a 45% stake in a refinery in the Netherlands, as well as gas stations in many countries.