The major commodity trading company Gunvor announced a $2.395 billion “sustainability-linked, multi-currency revolving credit facility” on Friday, a day after the U.S. Treasury Department described the Swiss energy firm as the “Kremlin’s puppet.”
According to Gunvor Group’s website, the company is “one of the world’s largest independent commodities trading houses by turnover.” On Thursday, the Treasury posted on X that “the war must end immediately. As long as Putin continues the senseless killings, the Kremlin’s puppet, Gunvor, will never get a license to operate and profit.”
In response, Gunvor branded the statement as “fundamentally misinformed and false” and announced it would scrap its reported $22 billion proposal to acquire assets from the Russian energy company Lukoil.
Despite the controversy, Gunvor moved ahead on Friday with securing a massive “ESG-linked” credit facility from a consortium of international banks. Some energy policy experts told the Daily Caller News Foundation (DCNF) that this move represents a dangerous misalignment of climate finance with U.S. strategic interests.
Jason Isaac, CEO of the American Energy Institute, told DCNF, “Gunvor’s ESG credit deal is more than financial hypocrisy, it’s a coordinated attack on America’s economic prosperity. Foreign investment firms are acting like a cartel, using ESG mandates to coerce U.S. companies into the same failed climate agendas that crippled European industry and deepened dependence on Russian energy.”
He added, “The deal rewards a company that the Trump administration rightly called ‘the Kremlin’s puppet’ while punishing American companies who reject ESG dogma. It’s a reminder that ESG was never about the environment, it’s about power.”
In its Thursday statement, Gunvor said, “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 firm further added, “We welcome the opportunity to ensure this clear misunderstanding is corrected. In the meantime, Gunvor withdraws its proposal for Lukoil’s international assets.”
Gunvor did not respond to DCNF’s request for additional comment.
Founded in 2000 by Swedish billionaire Torbjörn Törnqvist, Gunvor was previously co-owned by Gennady Timchenko, who reportedly had ties to Russian President Vladimir Putin, although he sold his stake in 2014.
The company announced that, “thanks to strong support from existing and new banking partners,” the credit facility offers “additional liquidity” compared to deals in past years.
The credit facility will continue to operate with a “comprehensive set” of environmental, social, and governance (ESG)-linked key performance indicators aimed at reducing greenhouse gas emissions. These include investing in “renewable and carbon reduction projects” and ensuring suppliers comply with human rights standards.
Banks financing the facility come from several countries including China, Switzerland, Abu Dhabi, London, and others. Citibank is the only bank headquartered in the United States involved in the deal.
Gunvor’s release noted, “The [revolving credit facility] RCF will be used for general corporate purposes, including the refinancing of the existing US $1,775,000,000 364-day tranche of the 2024 European Revolving Credit Facilities Agreement, and the US $350,000,000 3-year tranche of the 2023 European Revolving Credit Facilities Agreement.”
Proponents of ESG investing argue that incorporating climate and other sustainability risks can deliver long-term benefits for both investors and companies. Critics, however, contend that ESG may dilute fiduciary responsibility by prioritizing social goals over shareholder interests.
Several energy policy experts told the DCNF that the credit facility may spell bad news for U.S. strategic interests.
Sterling Burnett, Director of the Arthur B. Robinson Center on Climate and Environmental Policy at The Heartland Institute, stated, “If these banks and the sovereign countries that license or, in some cases, own them continue down this path, they may be sanctioned by the administration. This is bad for banking, bad for ending Putin’s illegal, immoral, and unjustified war on Ukraine, and in no way benefits transparency, social governance, or the environment, which is what Gunvor is supposed to be all about.”
Steve Milloy, Senior Fellow at the Energy and Environment Legal Institute, added, “The Trump administration maintains that international oil trader Gunvor is ‘Putin’s puppet’ and subject to sanctions. Although Gunvor denies this, it will not be able to deflect the accusation by embracing the climate scam and claiming to implement ESG policies. Oil industry participation in climate is dishonest greenwashing that reflects poorly on credibility.”
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https://dailycaller.com/2025/11/07/kremlins-puppet-inks-giant-climate-credit-line-deal-hours-after-trump-admin-blasts/