Swiss oil trader Gunvor has withdrawn its offer to buy Lukoil's foreign assets. The decision comes just 24 hours after the US Treasury Department labeled the company a "Kremlin puppet" and denied a license for the deal.

"President Trump has made it clear that the conflict must end immediately. The Kremlin's puppet, Gunvor, will never be granted a license to operate and profit." — the American department said in a statement.

Gunvor called the wording “fundamentally incorrect and false.”

"Gunvor has always been open and transparent about its owners and business, and for over a decade has been actively distancing itself from Russia, ceasing trade in compliance with sanctions, selling off Russian assets, and publicly condemning the conflict in Ukraine. We welcome the opportunity to correct this obvious misunderstanding.", the company responded.

On October 30, Lukoil announced that it had reached "key deal terms." Following the US Treasury Department's announcement, negotiations were suspended. The assets include refineries in Italy and Romania, as well as a network of gas stations in Eastern Europe.

Gunvor was founded in 2000 by Torbjörn Törnqvist and Gennady Timchenko. In 2014, Timchenko sold his stake to avoid sanctions. The company remains one of the largest independent oil traders.