UPDATE 5-Lukoil's Finnish petrol stations to shut over US sanctions

Finnish petrol station operator Teboil, owned by Russian oil major Lukoil, said on Wednesday it is preparing to shut down all its stations in the Nordic country as fuel runs out amid U.S. sanctions against its parent company.

Finnish petrol station operator Teboil, owned by Russian oil major Lukoil, said on Wednesday it is preparing to shut down all its stations in the Nordic country as fuel runs out amid U.S. sanctions against its parent company. Teboil is the first Lukoil-owned international business to say it will close down as a result of the sanctions.

Elsewhere, Lukoil has declared force majeure at its prized West Qurna 2 oilfield after Iraq halted all cash and crude payments, while a contractor working for Lukoil cancelled plans to drill for petroleum off Romania, and Bulgaria prepared to take over a Lukoil refinery. Teboil has 430 petrol stations in Finland, according to its website, or roughly one-fifth of the Nordic country's 2,250 stations, according to a 2024 report by an industry group.

"Stations will close in phases once fuel stocks are sold out," Finland's Teboil said in a statement, without giving a timeline. The company's management had warned the Finnish government in a letter that the country's energy infrastructure would suffer "serious disruptions" if it had to stop its operations, Finnish daily Ilta-Sanomat reported.

Teboil's service stations employed about 1,200 people, and in addition 180 people were employed at Lukoil's lubricants plant in Hamina in southern Finland, which was also at risk of shutting down, the newspaper added, citing the letter. "Fuel supply in Finland is not threatened, as Teboil does not refine fuel in Finland, but mainly distributes fuel from a Finnish refinery owned by Neste," Finland's Ministry of Economic Affairs and Employment said in an email to Reuters, adding that customers can switch to other retailers.

The United States last month hit Lukoil with sanctions over Moscow's war in Ukraine, disrupting the company's international business. Finland's Financial Supervisory Authority said last month banks and other Finnish institutions subject to its regulations should exercise caution in dealing with Lukoil and companies directly or indirectly owned by it.

The administration of U.S. President Donald Trump on Friday gave clearance to potential buyers to talk to Lukoil about buying its non-Russian assets, and Teboil had said on Monday it expected Lukoil to sell the chain.

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