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Lukoil completes deal on acquisition of Shell’s retail stations, plant in Russia

The sale was approved by Russia's Federal Antimonopoly Service, the company informed

MOSCOW, May 25. /TASS/. Lukoil has completed the acquisition of over 400 Shell retail stations and lubricants blending plant in Russia, the oil major said in a statement on Wednesday.

"The final agreement on acquisition of Shell's Russian retail and lubricants assets was signed in Moscow. The assets include the chain of filling stations primarily located in the Central and Northwestern federal districts of Russia, and lubricants blending plant located in Tver region. The sale was approved by Russia's Federal Antimonopoly Service," the statement said.

Lukoil has acquired 100% of shares in Shell Neft, which owns 411 retail stations under the Shell brand, as well as lubricants blending plant located in Russia’s Tver Region. It is expected that retail stations will be rebranded within one year after completion of the deal.

"Our priority is the well-being of our employees. Under this deal, all the people currently working for Shell Neft, more than 350 in total, will remain employed by the company, which is now owned by Lukoil," Shell's Downstream Director Huibert Vigeveno was quoted as saying.

"We appreciate the fact that Shell chose our company. I am certain that Shell's facilities will become a great addition to Lukoil's other downstream assets," noted Maxim Donde, Vice President for Refined Products Sales of Lukoil.

On February 28, Shell announced exiting all joint projects with Russia, including Nord Stream 2 and the Sakhalin-2 project on the production of LNG (27.5% of shares), whereas on March 8 the company announced the intention to start a gradual withdrawal from Russian petroleum products, pipeline gas and LNG. Shell’s charges related to the intention to abandon projects in Russia and fuel supplies related to Russia amounted to $4.24 bln in January-March 2022, the British oil and gas company said in its Q1 results report.

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