Gunvor chief steps down after US Kremlin accusations and sanctions pressure

The head of one of the world’s leading energy trading firms, Gunvor, has resigned and sold his controlling shareholding to company staff, following mounting scrutiny over connections to Russia. Torbjörn Törnqvist, a Swedish billionaire who co-founded Gunvor in 2000, owned 86.1 per cent of the company and held the positions of chairman and chief executive.

Gunvor, headquartered in Switzerland, accepted a management-led buyout that will see approximately 60 employees acquire Törnqvist’s stake. This transaction is being funded through a combination of the employees’ own equity and a fixed-interest loan from Törnqvist. The firm was valued at 6.5 billion US dollars according to its latest financial results, though the specific terms of this buyout have not been disclosed. Roughly 200 employees already hold shares in the company.

The move comes in the wake of an unsuccessful 22 billion US dollar bid by Gunvor for the international assets of Lukoil, the heavily sanctioned Russian oil major. Gunvor abandoned the bid after the US Treasury labelled the firm the Kremlin’s puppet and made clear that regulatory approval would not be granted while Russia continues its war in Ukraine. This marked the company’s most serious public criticism from Western governments since sanctions were imposed against Russian energy giants.

Gunvor is among the world’s largest independent commodities traders by volume, with operations centred on gas, oil, and refined products. The company trades the equivalent of 3.2 million barrels per day and reported net profits of 729 million US dollars on revenues of 136 billion US dollars for 2024. It employs more than 2,000 staff worldwide, including 90 based in London.

Gary Pedersen, a US citizen who previously led Gunvor’s Americas division, will become chief executive. He joined Gunvor from Millennium Management in 2024 and is based in Houston. The transaction will result in the full departure of the Törnqvist family, including Torbjörn’s son Fredrik, who has resigned from his leadership role. No members of the family or their representatives will maintain involvement with the firm.

The management believes that this ownership transition will enable Gunvor to pursue its global expansion strategy without the burden of ongoing controversy over its Russian business history. Pedersen stated that Gunvor possesses the financial strength, liquidity, and depth of leadership needed to advance its international growth ambitions.