Russian oil major Lukoil has announced it will sell its remaining assets in the Baltic States.
"We are selling our assets in Lithuania and Latvia. There is a serious anti-Russian sentiment there. Therefore, we decided to leave these countries,“ CEO Vagit Alekperov told Rossiya 24 TV channel.
He added the company doesn’t have plans to expand its network of gas stations in Europe, as Lukoil's strategy is to expand in exploration and the production of oil only.
In June Lukoil decided to sell 100 percent of its Estonian subsidiary Lukoil Eesti to the Estonian fuel company Olerex. According to Lukoil Vice President Vadim Vorobyev the sale of assets in Estonia is part of Lukoil’s plan to optimize its participation in Europe.
Since 2014, Lukoil has sold its gas stations in the Czech Republic, Slovakia, Hungary and Ukraine. At the end of 2014, the company said asset sales will raise $1.862 billion.
According to Forbes, Lukoil is the biggest private company in Russia. In the mid-2000s Lukoil was Russia’s biggest oil producer, it’s now second to Rosneft.
In September, CEO Alekperov said that the current tax system in Russia lets the company feel confident enough even if the oil price goes down below $30 per barrel.
The break-even price for Lukoil is $24 per barrel and the company is prepared even if the most negative forecasts come true.