Shell offloads Russian retail and lubricants businesses to LUKOIL
UK-based energy giant Shell has closed its previously announced sale of retail and lubricants businesses in Russia, that operates as Shell Neft, to Russian oil and gas firm LUKOIL.
The transaction, which was announced in March 2022, was approved by Russia’s Federal Antimonopoly Service. The financial terms of the deal were not revealed.
It was executed by Shell’s subsidiaries Shell Overseas Investments B.V. and B.V. Dordtsche Petroleum Maatschappij.
Shell Neft’s retail network includes 240 sites owned by it and 171 sites owned by dealers.
The chain of filling stations included in the deal is mainly located in the Central and Northwestern federal districts.
The deal also included a lubricants blending plant in Tver region.
All the 350+ employees of Shell Neft will retain their jobs, said Shell, which sold the business as part of its withdrawal from the Russian market, in protest of Russia’s war on Ukraine.
Maxim Donde — LUKOIL Vice President for Refined Products Sales said: “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.”