Russia’s Lukoil exits three European nations

By Azaz Qadir

Russia’s largest private oil producer Lukoil is pulling out of three central European nations, and selling its filling stations there as part of an "optimisation" plan that has already seen it exit Ukraine.

In a statement, the company revealed it would sell its network of 44 filling stations in the Czech Republic to Slovnaft, the Slovak subsidiary of Hungary's MOL Group, and that its 75 stations in Hungary and 19 in Slovakia would both be purchased by Hungarian Norm Benzinkut Kft.

The decision follows a warning from Lukoil Chief Executive Vagit Alekperov that the increasingly tough economic sanctions imposed by Western nations, particularly against the oil sector, would "have repercussions for all (Russian) companies".

Lukoil produces one-sixth of Russia’s oil and more than two percent of the world total.

Lukoil said all the deals will close by the end of the year but did not provide financial details. "The decision to sell the assets was taken as part of the effort to optimise Lukoil's business in petroleum product markets," the statement read.

The sanctions saw foreign investors exiting the Russian market even before their implementation, and the possibility even tougher measures to follow have forced even Russia’s most profitable companies to revise their plans.


Featured Articles

Top 10 largest revenue generating family businesses in MENAT

From the UAE to Turkey, these family firms are the largest by revenue in MENAT and cover everything from energy to entertainment

Top 10 metaverse projects in the UAE, including world firsts

As Accenture predicts the metaverse will fuel a US$1 trilion commerce opportunity by 2025, we round up 10 pioneering metaverse projects in the UAE

PwC’s survey shows Middle East CEOs remain upbeat on growth

CEOs in the Middle East are far more optimistic about regional growth than those in North America and Europe, according to PwC’s annual survey

Opinion: “Why we must tackle the digital skills crisis"

Leadership & Strategy

5 Mins With: Kathryn Kaminsky Vice Chair Trust Solutions PwC

Leadership & Strategy

Survey: The Future of Cloud Security in the Middle East