UK-based oil giant Shell has announced it will sell its petrol stations in Russia as it continues plans to exit the country.
It has struck a deal to sell Shell Neft to Lukoil, the second biggest oil producer under the Kremlin’s rule.
The deal includes 411 retail stations located in the Central and Northwestern regions and the Torzhok lubricants blending plant, north-west of Moscow.
This comes after Shell agreed to quit Russia due to the ongoing conflict with Ukraine, alongside rival energy firms such as BP, ExxonMobil and Equinor.
Shell has booked a $3.9bn post-tax impairment charge from the decision, but still reported record quarterly profits this month amid soaring oil and gas prices.
“Our priority is the well-being of our employees,” said Huibert Vigeveno, Shell’s Downstream Director.
“Under this deal, more than 350 people currently employed by Shell Neft will transfer to the new owner of this business.”
Meanwhile the UK government has looked to shore up the country’s energy security due to the ongoing war and rising costs of living.
It has pledged to support a significant ramp up in renewables and nuclear power, alongside further North Sea oil and gas exploration.
Shell has come under increasing pressure in the UK to divest from fossil fuels due to the environmental impact.
The energy giant has committed £25bn investment domestically by the end of the decade, chiefly focused on low and zero carbon energy sources.
Meanwhile, Chancellor Rishi Sunak is reportedly considering bringing in a windfall tax, following persistent calls from the Labour Party for a one-off £1.2bn levy on fossil fuel firms to help lower household energy bills.
The government has so far opted against further levies, concerned it could deter investment in the UK energy sector.