• Natural Gas News

    Shell offloads Russian retail and lubricants division

Summary

Shell's departure from Russia has begun as Lukoil picks up Shell Neft.

by: Callum Cyrus

Posted in:

Complimentary, Natural Gas & LNG News, Europe, Corporate, Mergers & Acquisitions, News By Country, Russia

Shell offloads Russian retail and lubricants division

Shell has struck an agreement with Lukoil to sell Shell Neft, its Russian retail and lubricants business, the UK major reported on May 12.

The deal means Shell has completed another part of its pledge to withdraw from Russia in a "phased manner". Shell expects the deal to be finalised later this year, pending regulatory approvals.

Shell Neft comprises the Torzhok lubricants blending plant, located 200 km northwest of Moscow, as well as 411 retail stations dispersed around central and northwestern Russia. Around 350 staff members who are currently on Shell Neft's payroll will transfer to Lukoil once the deal is completed.

Lukoil vice president for refined products sales Maxim Donde said: "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."