• 1 hour Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 hours New Video Game Targets Oil Infrastructure
  • 4 hours Shell Restarts Bonny Light Exports
  • 6 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 12 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 17 hours British Utility Companies Brace For Major Reforms
  • 21 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 23 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 24 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 1 day OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 1 day London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 1 day Rosneft Signs $400M Deal With Kurdistan
  • 1 day Kinder Morgan Warns About Trans Mountain Delays
  • 1 day India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 7 days Trump Passes Iran Nuclear Deal Back to Congress
  • 7 days Texas Shutters More Coal-Fired Plants
  • 7 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 7 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 7 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
Are Combustion Engines Reaching Peak Demand?

Are Combustion Engines Reaching Peak Demand?

As countries announce plans to…

OPEC Favors 9-Month Extension Of Production Cut Agreement

OPEC Favors 9-Month Extension Of Production Cut Agreement

According to Reuters sources, OPEC…

Anti-Russian Sentiment Pushes Lukoil Out Of Baltics

Anti-Russian Sentiment Pushes Lukoil Out Of Baltics

Citing anti-Russian sentiment in Eastern Europe, Russian Lukoil is selling some 240 gas stations in Lithuania, Latvia and Poland, as it seeks to optimize its retail assets in the oil price downturn.

The prospective buyer is Austria’s AMIC Energy Management, and the deal could close in the second quarter of this year, though final approval from the authorities is still pending.

Anti-Russian sentiment is running high in the Baltic States, and the new sale follows a similar move last summer in Estonia to divest 100 percent of its Estonian subsidiary Lukoil Eesti to a local energy company, Olerex.

But it’s not just the Baltics. In 2014, Lukoil also sold off its gas stations in the Czech Republic, Hungary and Slovakia.

Related: OPEC Will Not Blink First

While Poland is scheduled to shed the Lukoil name sometime in 2016, the Latvian and Lithuanian stations will likely retain the Lukoil brand for the next five years. New buyers will have to distance themselves from the Lukoil brand in some other way in order to keep anti-Russian clientele from filling up elsewhere.

Poland, under a new government since October 2015, is no friend to Russia, and the new powers at the helm are fanning the flames of anti-Russian sentiment more than ever. There are even suggestions that the ruling party believes the plane crash that killed the Polish president’s twin brother, former president Lech Kaczynski in 2010, was the result of Russian sabotage.

It’s all been bad for business from where Lukoil is standing. And the ongoing conflict in Ukraine, plus rumblings in Georgia, will only make matters worse.

While Lukoil has said that the decision to sell the gas stations was part of a “program to optimize Lukoil’s retail asset structure in Eastern Europe,” more broadly speaking, the optimization is necessary because of anti-Russian sentiment.

Related: Could Gasoline Drop Below $1 Per Gallon?

The decision to withdraw from the Baltics, according to Lukoil CEO Vagit Alekperov, was based on the fact that the company ‘’began to lose money and felt a negative attitude” towards them.

Alekperov also told Russian TV station Russia-24 that the Lithuanian and Latvian assets were being sold because of what he called a “fairly serious anti-Russian sentiment.”

All in all, it’s been a tough year for all oil companies, and for Lukoil this has meant a number of things.

Related: Rising OPEC Oil Production Worsens Glut

Earlier this week, Lukoil said its proved oil reserves were down to 12.585 billion barrels. The same period last year they were at 13.6 billion barrels. Lukoil’s total proved hydrocarbon reserves are down this year as well, to 16.6 billion barrels of oil equivalent. For the previous year they were at 17.59 billion barrels.

And while the company is courting a return to Iran, it’s pulling out of other big projects.

Earlier this week it announced that it was definitively withdrawing from its offshore Ivory Coast, where it’s been since 2006, after suggesting withdrawal in mid-January.

On Tuesday, shares of LUKOIL (OTCMKTS:LUKOY) opened at 29.65, compared with a one-year low of $25.88 and a one-year high of $53.78.

By Julianne Geiger of Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Alex on February 12 2016 said:
    Hi Jim,

    1) I kindly ask you if Iraq and Libya are stable now? (was Russia behind the disintegration of these countries?! Who was really behind it?!!)

    2) When was ISIL born? Where? Why?

    3) Did the refugee crisis in Europe start after 30 of September, 2015? Or before?

    As far as I understand Russia does not have smthg to do to ME destabilization
    and refugee crisis as well. As Mr. Erdogan and Mrs. Merkel say now!
    Washington insists to remove Assad. Ok, Americans did all they best to kill Saddam
    Hussein. And after that "peace and democracy prevail there". So why should the World trust to Washington?! U.S. just want to remove the proper national leaders and to seize the resources of these countries. If you do not trust me, just check who did get access to Iraq oil fields after the Iraq war!

    I would say the neocons in Washington look like thimbleriggers!
  • Jim on February 11 2016 said:
    It has become fashionable for Russia to blame anti-Russian sentiment in all disasters! Russia's economy is in trouble, so it needs to sell energy assets. Blame Saudi Arabia or Turkey or that big country to the north.
  • Alex on February 11 2016 said:
    Today it is popular to blame Russia in all disasters ! F.e, Western leaders blame
    Moscow for the refugee crisis! Great, they shift from a sick head on healthy!
    Nobody remembers Russia has started the air operation in Syria on 30 of September, 2015. Refugee flee into Europe was provoked by ISIL (was born thanks to U.S. invasion into Iraq) and by civil war in Syria (antigovernment forces were supported dy West!). Turkey is the key player in refugee game.
    I am sure if crop failure happens in Poland or Baltic countries Russia would be blamed again. It is fashionable today!

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News