Shell is pulling out of Ukraine’s gas station network due to the ongoing war. Ukraine’s biggest oil producer Ukrnafta is all set to acquire Shell’s stake of the business, including its solid network of 118 gas stations. This deal will help Ukrnafta expand its network of gas stations five times. Shell has been operating in Ukraine for 18 years.

PJSC Ukrnafta is a subsidiary of the Naftogaz Group that will acquire 51% Shell’s stake in Alliance Holding LLC. Alliance is the owner of Shell’s gas station network in Ukraine. Shell is a top ten fuel retailer in Ukraine with 118 gas stations. They are ranked ninth in terms of fuel sales in the first 9 months of 2024 and seventh in terms of the number of gas stations, particularly in busy areas. This position will now be held by Ukrnafta.

The exact terms of the agreement are not disclosed yet, but both concerned parties will file a concentration permit application with the Antimonopoly Committee in the comping days.

The acquisition is expected to generate substantial revenue for the Naftogaz Group, with profits channeled directly to the national budget through dividends. The existing 1,550 employees working at the gas stations and the head office will be retained, ensuring continuity of operations. All gas stations will be rebranded under the Ukrnafta banner within the next year.

Oleksiy Chernyshov, CEO of the Naftogaz Group said about the acquisition, "The Naftogaz Group has not only adapted to the war conditions but becomes stronger. We remain flexible and we are not afraid to make decisions that allow the State earning money. Ukrnafta will become the majority owner of a network of 118 operating gas stations, and other property. The profit that Alliance Holding will generate will go to the national budget in dividends."

Sergii Koretskyi, CEO of PJSC Ukrnafta said, "The Supervisory Board of Ukrnafta approved the resolution, as the acquisition of the business, managed for 15 years by a reputable international group, will provide Ukrnafta an opportunity to expand its gas-station network and market share, which corresponds to the Company's development strategy."

With this strategic acquisition, Ukrnafta solidifies its position as a major player in the Ukrainian fuel market, expanding its reach and contributing to the nation's economic growth.

Ukrnafta is Ukraine's largest oil and gas production company, engaged in the exploration, extraction, and production of crude oil and natural gas. It operates extensive reserves across the country and plays a crucial role in Ukraine’s energy sector.