Lukoil buys Shell’s retail, lubricants businesses in Russia

By Sibel Morrow

ANKARA (AA) - Russian oil giant Lukoil agreed to buy 100% shares of Shell’s retail and lubricants businesses in Russia, the companies announced on Thursday.

Shell’s decision to sell Shell Neft, which includes 411 retail stations, primarily located in the central and northwestern federal districts of Russia, and a lubricants blending plant located in the Tver region, was in line with the company’s announcement in early March to withdraw from all Russian hydrocarbons, including crude oil, petroleum products, gas, and liquefied natural gas (LNG) in a phased manner.

“Our priority is the well-being of our employees,” Huibert Vigeveno, Shell’s downstream director, was quoted as saying in a statement.

Vigeveno said more than 350 people currently employed by Shell Neft would be transferred to Lukoil under the deal.

The sale completion is expected later this year, subject to regulatory approval.