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Shell plans to sell its Russian lubricant blending plant and all its fuel stations in Russia to Lukoil, according to insider’s information. On March 8th, Shell announced its intent to withdraw from Russian oil and gas. By the end of 2022 Shell is planning to completely stop cooperation with Russia.
Shell’s blending plant, located in Torzhok in Tver region was opened in 2012 with the production capacity of 180,000 tons per year. 80% of the finished lubricants sold by Shell Russia are produced in Torzhok. That was one of the three new major blending plants in Russia. TotalEnergies and FUCHS opened their blending plants in Kaluga to increase their presence in Russia, but now these two plants will most likely be sold to local partners or closed.
Shell reported the $3.9 billion loss from the start of the withdrawal of the business from Russia. Since the end of February, the oil majors (except Chevron and its CPC) have written off $37 billion in Russia.
In 2021, Russian Automotive Lubricants Market was at 555.46 million liters. The war in Ukraine has affected the market so in 2022 the number is expected to fall.