Swiss-based energy trader Litasco is taking significant steps to rebuild its operations in the Americas, which suffered after Russia’s invasion of Ukraine in 2022. Key points include:
Hiring New Talent: Litasco is recruiting experienced traders, including Dmitri Sinenko as managing director of Lukoil Pan Americas, to lead the turnaround efforts. Sinenko is joined by Sushant Koduru, who will manage gasoline and diesel trading.
Credit Lines Secured: The company has secured over $2 billion in open credit lines, enabling it to reactivate its trading activities that had nearly ceased due to financing challenges stemming from global sanctions and reputational concerns related to Russian oil.
Operational Independence: Litasco operates independently from its Russian parent, Lukoil, and the U.S. unit does not engage in trading Russian-origin cargoes. This separation is part of a broader restructuring strategy to distance itself from Lukoil.
Future Plans: The company aims to focus on oil and fuel trading across North, Central, and South America, as well as the Caribbean. A parent guarantee from Lukoil ensures that Litasco will cover contractual obligations if the U.S. arm faces difficulties.
Talent Pool Recovery: The workforce at Lukoil Pan Americas has drastically reduced from over 80 employees before the conflict to about 16. The new management team plans to expand the talent pool in the coming months.
Market Context: The trading community in Houston continues to grow, driven by increased oil and gas production in the U.S., presenting opportunities for Litasco to re-establish itself in the market.