An agreement on the sale by Neste Corporation of its Russian fuel retail business consisting of 75 fuel stations in North-West Russia and a terminal in Saint Petersburg to PJSC Tatneft was signed in July of 2019.
The transaction was approved by the Russian competition authorities on 4 October and closed on 31 October 2019.
Tatneft's retail network is one of the five largest in Russia with more than 710 own petrol stations. The focus of Tatneft's retail sales strategy is on the sale of high-grade fuels produced at its own state-of-the-art TANECO refinery. One of the key priorities upon the development and operation of Tatneft's retail network is to minimize environmental impact.
Pursuant to a separate agreement between Tatneft and Neste following the acquisition the acquired retail network will continue to operate under the Neste brand for up to 5 years.
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. Our wide range of renewable products enable our customers to reduce climate emissions. We are the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. We are also a technologically advanced refiner of high-quality oil products. We want to be a reliable partner with widely valued expertise, research, and sustainable operations. In 2018, Neste's revenue stood at EUR 14.9 billion. In 2019, Neste placed 3rd on the Global 100 list of the most sustainable companies in the world. Read more: neste.com
Tatneft in brief
PJSC Tatneft (TATN, Moscow Exchange; ATAD, LSE) is one of the largest vertically integrated oil companies in Russia with its core operations located in Tatarstan, Russian Federation. In 2018 Tatneft Group produced 29.5 million tonnes (210.4 MMbbl) of crude oil and 925.3 million cubic meters of gas. Tatneft operates the most modern and one of the most complex refineries in Russia TANECO. In 2018 Tatneft produced over 8.9 million tonnes of refined products with the light product yield of around 84%. In 2019 with the launch of the second initial processing unit CDU/VDU TANECO's daily processing of crude oil is expected to reach 203 000 barrels, and in the future, following the completion of additional deep conversion units, approximately 293 000 barrels of crude oil per day. Apart from crude oil and gas production and refining activities, Tatneft is also involved in petrochemicals', mainly tires, production and marketing, manufacturing of equipment for the production, treatment and refining of oil and gas, as well as engineering, procurement and construction services for oil, gas and petrochemical projects, and from 2016 Bank ZENIT is part of Tatneft Group. Tatneft's consolidated sales and other operating revenues on non-banking activities net of export duties and excise taxes in 2018 were 910,534 million Rubles (US$ 14,520 million). Additional information is available at www.tatneft.ru
This press-release contains certain statements about future events and expectations that are forward-looking in nature, as well as judgments and assumptions. Any statement in this press-release that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ or are judgmental and assumptive. PJSC Tatneft and Neste Corporation assume no obligations to update the forward-looking statements, judgments and assumptions contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.
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