MOSCOW, Nov 7 (Reuters) - The Kremlin said on Friday

that Russian oil major Lukoil's international interests should

be respected after Swiss commodity trader Gunvor said it had

withdrawn its proposal to buy Lukoil's foreign assets.

Gunvor's move came after the U.S. Treasury called it

Russia's "puppet" and signalled Washington opposed the deal.

Asked about the development, Kremlin spokesman Dmitry Peskov

said it was commercial matter and related to what he called

illegal U.S. sanctions on Moscow, but that it was important that

Lukoil's interests were protected.

"We believe that all legitimate interests of a major

international company, including a Russian one, like Lukoil, in

terms of international trade and economic relations, must be

respected," said Peskov.

Lukoil was forced to sell its foreign assets after the U.S.

sanctioned it alongside Rosneft, another Russian oil major, last

month, part of what Washington said was a push to get Russia to

the negotiating table over Ukraine.

Lukoil has operations

in countries as diverse

as Iraq, Finland and Switzerland, aside from significant

assets in post-Soviet countries including Kazakhstan, Uzbekistan

and Azerbaijan.