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Russia’s oil producer Lukoil has agreed to acquire Shell’s Russian retail and lubricants businesses.

As per the terms of the deal, Lukoil will acquire Shell Neft, which owns Shell’s retail and lubricants businesses in Russia.

Shell Neft is a wholly owned unit of Shell’s subsidiaries Shell Overseas Investments, and Dordtsche Petroleum Maatschappij.

The assets considered for sale include 411 retail stations located in the Central and Northwestern regions of Russia, as well as the Torzhok lubricants blending plant, situated approximately 200km north-west of Moscow.

Shell Neft’s retail network comprises 240 Shell-owned sites, and 171 sites that are owned by dealers.

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By GlobalData

The sale forms part of Shell’s wider plan to exit its operations from Russia in the wake of its invasion of Ukraine.

In a phased manner, the UK oil major intends to withdraw from Russian hydrocarbons, including petroleum products, crude oil, gas, and liquefied natural gas (LNG).

Shell downstream director Huibert Vigeveno said: “Our priority is the well-being of our employees.

“Under this deal, more than 350 people currently employed by Shell Neft will transfer to the new owner of this business.”

Subject to regulatory approval, the transaction is planned for completion later this year.

Lukoil refined products sales vice-president 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.”

Earlier this month, Shell wrote off $3.9bn post-tax in Q1 2022 due to its decision to exit Russian oil and gas operations.

Ten additional gas buyers from Europe have opened accounts with Russia’s Gazprombank to pay for Russian gas in rubles, as order by Russian President Vladimir Putin, reported Bloomberg News.

An undisclosed person was cited by the publication as saying that a total of 20 European companies have opened accounts with the Russian bank while 14 other clients are seeking the paperwork needed to set them up.