Finnish petrol station operator Teboil, a subsidiary of Russian oil major Lukoil, announced on Wednesday that it is preparing to close all its petrol stations in Finland.
This action is due to fuel shortages resulting from US sanctions imposed on its parent company, according to a Reuters report.
Teboil, a significant player in Finland’s fuel market, operates an extensive network of petrol stations across the country.
According to the company’s official website, Teboil boasts approximately 430 stations.
This substantial presence positions Teboil as one of the major fuel retailers in the Nordic nations.
Finnish supply security
To put this figure into perspective, a 2024 report released by a leading industry group provided a comprehensive overview of the Finnish service station landscape.
This report indicated that the total number of petrol stations operating in Finland stands at roughly 2,250.
Consequently, Teboil’s 430 stations represent a significant market share, accounting for approximately one-fifth of all fuel retail locations nationwide.
This concentration highlights Teboil’s considerable influence on fuel distribution and pricing dynamics within the Finnish economy.
The widespread availability of Teboil stations underscores their role in serving both private motorists and commercial transport sectors across various regions of Finland.
Finland’s Ministry of Economic Affairs and Employment told Reuters that the country’s fuel supply is secure, as Teboil primarily distributes fuel from a Finnish refinery owned by Neste rather than refining it in Finland.
The Ministry also noted that customers have the option to switch to alternative retailers.
The US last month imposed sanctions on Lukoil, a major Russian oil company, as a consequence of Moscow’s ongoing conflict in Ukraine.
These punitive measures, enacted last month, have significantly hampered Lukoil’s international operations.
The sanctions aim to restrict the company’s access to global markets and financial systems, thereby escalating the economic pressure on Russia in response to the war.
Lukoil’s global impact and asset restructuring
Lukoil’s international operations have been significantly impacted by sanctions, with various actions across different locations.
Teboil, the first Lukoil-owned international business to do so, has announced its closure due to the sanctions.
In Iraq, Lukoil declared force majeure at its valuable West Qurna 2 oilfield after the country ceased all cash and crude payments.
Further difficulties include a contractor cancelling planned offshore petroleum drilling for Lukoil in Romania, while Bulgaria is preparing to assume control of a Lukoil refinery.
“Stations will close in phases once fuel stocks are sold out,” Finland’s Teboil said in a statement.
The Trump administration’s Friday clearance allowed potential buyers to engage in discussions with Lukoil regarding the acquisition of its non-Russian assets.
This development follows Monday’s statement from Teboil, which indicated an expectation that Lukoil would proceed with the sale of the chain.
This signals movement toward a potential restructuring of Lukoil’s international holdings.
The Financial Supervisory Authority of Finland issued a cautionary statement last month, advising banks and other regulated Finnish institutions to be prudent in their dealings with Lukoil and its directly or indirectly owned subsidiaries.
The post Sanctions claim first major casualty: Lukoil’s Finnish subsidiary Teboil announces closure appeared first on Invezz
