Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Shell sells Russian fuel business to Lukoil

© BloombergBubbles form in lubricant oil inside a barrel at the Royal Dutch Shell Plc lubricants blending plant in Torzhok, Russia, on Wednesday, Feb. 7, 2018.  Photographer: Andrey Rudakov/Bloomberg
Bubbles form in lubricant oil inside a barrel at the Royal Dutch Shell Plc lubricants blending plant in Torzhok, Russia, on Wednesday, Feb. 7, 2018. Photographer: Andrey Rudakov/Bloomberg

Shell has struck a deal to sell its retail and lubricants business in Russia to locally owned Lukoil.

The company did not provide a price.

The agreement will see Shell Overseas Investments and Dordtsche Petroleum Maatschappij sell Shell Neft. The deal covers 411 fuel stations, mostly in the central and northwest areas of Russia. It also includes the Torzhok lubricants blending plant, around 200 km northwest of Moscow.

“Our priority is the well-being of our employees,” said Huibert Vigeveno, Shell’s Downstream Director. “Under this deal, more than 350 people currently employed by Shell Neft will transfer to the new owner of this business.”

Lukoil vice president for refined product sales Maxim Donde said the acquisitions “fits well into Lukoil’s strategy to develop its priority sales channels, including retail, as well as the lubricants business”.

Shell said it was pulling out of Russia in early March. The company said the deal would be in full compliance with all applicable laws and regulations.

It should complete later this year. It will require approval from the Federal Antimonopoly Service.

Shell Neft has 240 sites owned by Shell and 171 sites owned by dealers. The company also has 19 trademark licence agreement sites, which do not fall under the deal with Lukoil.

Shell reported a charge of $2.6 billion as a result of its withdrawal from Russia, in its first quarter results. Of this, it took a $594 million charge in its marketing sector.

An assessment of Shell Neft at the time suggested an impairment of non-current assets of $358mn and other charges of $236mn.

The company has a major presence in Sakhalin-2, an oil and LNG project in the Far East. Shell took an impairment of $1.6bn on this facility.

Lukoil is currently listed on the London Stock Exchange but is in the process of cancelling this. It expects to complete this withdrawal by June 6.

Recommended for you

More from Energy Voice

Latest Posts