Shell in talks to sell Russia fuel stations as part of exit plan

SHELL is in talks to sell its fuel stations in Russia as it withdraws from the country in response to the invasion of Ukraine.

“We can confirm the ongoing negotiations on the sale of Shell Neft, which owns a retail network and lubricants plant which is located in Torzhok,” Shell’s press office said in a statement. “Our key priority is safety of our people and operations, maintaining employment and compliance with the Russian legislation.” 

Russia’s second-largest oil producer Lukoil PJSC, which has its own retail network, is the most likely buyer, Forbes reported earlier on Friday, citing an unidentified person from Shell’s office in Russia. Shell’s retail network includes more than 370 branded sites in 28 cities in Russia, according to its website. 

The London-based company announced its intent to exit Russian at the end of February, saying it deplored the Kremlin’s “senseless act of military aggression.”

Shell’s main investments there is a partnership with Gazprom PJSC in the Sakhalin-2 liquefied natural gas project. It also played a part in financing the controversial undersea Nord Stream 2 gas pipeline from Russia to Germany.

On Thursday, Shell took a US$3.89 billion impairment charge in relation to the planned exit from Russian, of which about 15 per cent was related to Shell Neft. BLOOMBERG