Ukrnafta signs agreement with Shell to acquire filling stations – Naftogaz CEO Chernyshov

Ukrnafta PJSC, which is part of Naftogaz Group, and the international company Shell have signed an agreement for Ukrnafta to acquire a 51% stake in Alliance Holding LLC.

The relevant statement was made by Naftogaz Group’s press service, an Ukrinform correspondent reports.

“In the coming days, Ukrnafta, which has been selected as the winner of the competitive process, will join Shell in applying to the Antimonopoly Committee for merger clearance, a prerequisite for completing the transaction. Following approval, the company will be able to complete the transaction and assume all shareholder rights and obligations,” the report states.

As noted by Naftogaz Group Board Chairman & CEO Oleksiy Chernyshov, Naftogaz Group has not only adapted to the wartime conditions but is also becoming stronger.

“We remain flexible and are not afraid to make decisions that will allow the state to generate revenue. Ukrnafta will become the majority owner of a network of filling stations, which includes 118 operating stations and other assets. This will ultimately generate additional financial revenue for Naftogaz Group and contribute to an increase in contributions to the state budget,” Chernyshov emphasized.

According to Naftogaz Group’s press service, Shell ranks among the top 10 networks in Ukraine in terms of sales, with 118 operating filling stations. It was also ranked ninth for fuel sales in the first half of 2023 and seventh for the number of stations, most of which are located in high-traffic areas.

“The Supervisory Board of Ukrnafta approved this acquisition because it aligns with the company’s development strategy. The business, led by a reputable international group for 15 years, will expand Ukrnafta’s network of filling stations and increase its market share,” Ukrnafta PJSC CEO Sergii Koretskyi noted.

Naftogaz Group mentioned that all filling stations would be rebranded in the coming year. The existing B2B contracts will be implemented in full, and the company will retain its staff, i.e. 1,550 employees working at the filling stations and the head office.

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Photo: Naftogaz Group