Shell has today announced it has signed an agreement to sell Shell Neft LLC, which owns Shell’s retail and lubricants businesses in Russia, to PJSC LUKOIL.

LUKOIL is considered the second-largest producer of crude oil in Russia.

The deal includes 411 retail stations, mainly located in the Central and Northwestern regions of Russia and the Torzhok lubricants blending plant, around 200 kilometres north-west of Moscow.

Huibert Vigeveno, Shell’s Downstream Director, said: “Our priority is the well-being of our employees.

“Under this deal, more than 350 people currently employed by Shell Neft will transfer to the new owner of this business.”

Maxim Donde, LUKOIL’s Vice President for Refined Products Sales, commented: “The acquisition of Shell’s high-quality businesses in Russia fits well into LUKOIL’s strategy to develop its priority sales channels, including retail, as well as the lubricants business.”

Last month, Shell said the decision to withdraw from its Russian operations after the war in Ukraine would cost it an estimated $5 billion (£3.8bn).