Page 10 - FSUOGM Week 20 2022

FSUOGM INVESTMENT FSUOGM

Shell divests Russian fuel, lubricants

business to Lukoil

EUROPE SHELL has struck a deal to sell its retail fuel Commenting on its withdrawal from Rus-
and lubricants business in Russia to the local sia, Shell CEO Ben van Beurden said last week
The sale was for an oil producer Lukoil, marking the first progress that “good progress” was being made, and he
undisclosed sum. in the UK oil major’s planned withdrawal from stressed that the company intended to sell its
the country in response to Moscow’s invasion of assets in the country rather than simply walk-
Ukraine. ing away.
The sale of Shell Neft for an undisclosed sum Shell booked a $3.9bn impairment charge
will need approval from Russian anti-monopoly on its Russian exit in its first-quarter results,
regulators. The oil company is divesting a chain reflecting the loss of value it expects from its
of 411 filling stations and a lubricants plant some divestments.
200 km north-west of Moscow. Earlier this month Forbes reported that Shell
“The acquisition of Shell’s high-quality busi- was in talks with several buyers for its fuel and
nesses in Russia fits well into Lukoil’s strategy lubricants business in Russia, including Lukoil.
to develop its priority sales channels, including Under the deal, Lukoil will take on all 350 of
retail, as well as the lubricants business,” Lukoil’s Shell’s staff, and it has reportedly committed to
vice-president for refined products sales, said in continuing to pay their salaries until the end of
a statement. the year.
Shell is among a number of international oil Separately, Shell is reported to be in talks with
companies (IOCs) to have announced an exit China’s largest state oil companies on the sale of
strategy from Russia in the wake of Moscow’s its stake in Sakhalin 2, although Beijing is hesi-
invasion of Ukraine. The UK major’s flagship tant about making further investments in Russia
assets in the country are a 27.5% stake in the through fear of future sanctions and the general
Gazprom-operated Sakhalin-2 LNG and oil political fallout from Russia’s war. Sakhalin 2 sat-
project in the Russian Far East, and half-own- isfies about 4% of the global LNG market, with
ership of the Salym Petroleum oil joint venture most of its exports going to China, Japan and
with Gazprom Neft in Western Siberia. South Korea. ™

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