Business Strategy Lukoil to Buy Shell’s Retail and Lubricants Businesses in Russia
Shell has entered into an agreement with Lukoil to sell Shell Neft, its retail and lubricants businesses in Russia. The move is in line with Lukoil’s strategy to develop its priority sales channels such as retail, and the lubricants business.
London/UK – Shell Overseas Investments and B.V. Dordtsche Petroleum Maatschappij – subsidiaries of Shell – have signed an agreement to sell Shell Neft, which owns Shell’s retail and lubricants businesses in Russia, to Lukoil. The deal includes 411 retail stations, mainly located in the Central and Northwestern regions of Russia, and the Torzhok lubricants blending plant, around 200 kilometres north-west 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 get transferred to the new owner of this business.”
“The acquisition of Shell’s high-quality businesses in Russia fits well into Lukoil’s strategy to develop its priority sales channels, including retail, as well as the lubricants business,” said Maxim Donde, Lukoil’s Vice President for Refined Products Sales.
The agreement with Lukoil follows Shell’s announcement in early March of its intention to withdraw from all Russian hydrocarbons in a phased manner, and will be carried out in full compliance with applicable laws and regulations.
The sale is expected to be completed later this year, subject to regulatory approval.