Shell has agreed to sell to Lukoil more than 400 petrol stations in Russia. Shell Neft, a subsidiary of the Russian subsidiary, will be sold for an undisclosed amount.
Many Western oil and gas companies were looking to free up their Russian businesses following the Ukrainian invasion.
Shell said the agreement, which includes 411 gas stations, would protect 350 jobs.
The sale includes a plant-based dressing area about 200km northwest of Moscow. Lukoil is Russia’s largest oil producer after government-sponsored Rosneft.
Shell announced in February that it would sell its Russian assets over the Ukrainian invasion.
Earlier this month, it reported recorded profits on a quarterly basis as power companies continued to benefit from rising oil and gas prices.
In the first three months of this year, Shell made $ 9.13bn (£ 7.3bn) – about the $ 3.2bn they announced at the same time last year.
Withdrawal of Russian contracts
But the company said the withdrawal of Russian contracts, which include the sale of its shares in all shares with Russian power company Gazprom, cost $ 3.9bn (£ 3.1bn).
Shell is making about three times as much profit as oil prices rise
Shell will take £ 3.8bn from Russia
Windfall taxes on energy companies are still an option
“Under this agreement, more than 350 people currently employed by Shell Neft will transfer to the new owner of the business,” said Huibert Vigeveno, director of Shell.
Maxim Donde, Lukoil’s vice-president of refined products, said: “The acquisition of high-quality Shell businesses in Russia fits well with Lukoil’s strategy to improve leading sales channels, including retail, and retail business.”
When the conflict broke out in Ukraine. Power companies quickly came under pressure as countries announced a ban and a ban on Russian oil and gas in the weeks following the attack.
BP is a major figure in the Russian power company Rosneft, but within days of the war, it announced the end of the operation.
Promises from Shell, ExxonMobil and Equinor to cut off their Russian investment were closely followed by pressure from shareholders, as well as government and the public.
Total Energies, another major player in Russia. Has said it will not sponsor new projects in the country. But unlike its peers it does not plan to sell existing investments.
Third largest producer in the world
Russia is the third largest producer in the world, following the US and Saudi Arabia.
Despite widespread sanctions and many countries reducing their reliance on Russian oil. The country has almost doubled its monthly earnings from oil exports. To the EU, according to the Center for Research on Energy and Clean Air.
The EU imported about 22bn euros (£ 19bn) of residual fuel per month from Russia. Since the start of the war as oil and gas prices rose. Compared to about € 12bn (£ 10.2bn) per month by 2021.
International firms announcing the reduction of their business operations in Russia have begun reporting related losses.
The Lukoil deal is one of the first when a Western company. Shell listed in the UK, has been able to sell its Russian assets. The sale is still subject to official authorization by Russia’s one-government service.