Shell is selling its petrol stations and lubricants plant in Russia to privately owned Lukoil, Russian oil company, according to EU Reporter.
Shell has encountered the risks of nationalization of its assets in Russia as a result of current situation in the country. Another risk was to “fire sale” the assets for a much lower price than their true value.
According to the sources in Russian oil&gas, the purchase is done on market terms and in the same time might save the company’s property from the potential risk.
Shell might sign the deal within next few days. The same sources claim that Shell was in negotiations with at least two other companies, capable to acquire and operate smoothly over 400 retail stations, mainly located in the Central and Northwestern regions of Russia. The preferences were given to the company with the vastest international experience in EU and America and own lubricants manufacture facilities. The deal also includes Shell’s lubricants blending plant, around 200 kilometres north-west of Moscow.
The experts say this is a “good deal” for Shell under the present circumstances. In general, “The situation in Russia cannot be called suitable for doing business, so there shouldn’t be any high expectations. But it’s a market transaction after all”, the expert claims.
Lukoil was one of the first major Russian companies to openly express their resentment to the conflict in Ukraine calling for the soonest termination of it.
Lukoil, an oil company with HQ in Russia and international business in more than 30 countries mostly in EU, owns over 1800 stations in America and Eurasia and more than 2220 branded stations in Russia. It operates 8 own lubricants plant and 2 joint ventures in and outside Russia, as well as 25 partner factories worldwide and distribution in more than 100 countries.
According to the sources, the deal is to be closed before the end of this year after the antimonopoly approval.