Russia’s Lukoil chief Alekperov resigns after being sanctioned | Russia-Ukraine war News


Lukoil is Russia’s second largest oil producer.

By Bloomberg

Russia’s second-largest oil producer Lukoil PJSC mentioned Chief Government Officer Vagit Alekperov will resign, within the newest signal of rising strain on the nation’s power business because the invasion of Ukraine.

The 71-year-old Alekperov joins a protracted record of Russian CEOs who’ve stepped down after being focused with Western sanctions. The bosses of the nation’s largest petrochemical producer Sibur Holding, web firm Yandex NV and e-commerce agency Ozon Group have all resigned in latest months.

Alekperov, who was sanctioned by the U.Okay. and Australia earlier this month, knowledgeable the corporate about his determination to resign as a member of the board of administrators and as president, Lukoil mentioned in a press release on Thursday. As of March 31, Alekperov owned 3.12% voting shares and was the beneficiary of 5.43% of shares with out voting rights, in keeping with the assertion.

Lukoil fell as a lot as 7.9% to three,970 rubles a share and was buying and selling down 7.2% as of 6:36 p.m. in Moscow, to the bottom because the finish of February when Russia invaded Ukraine.

The board of administrators appointed Vadim Vorobyev, who’s first govt vp, as its appearing president, native information outlet RBC reported, citing two unidentified individuals near the corporate. Lukoil declined to remark when contacted by Bloomberg.

Alekperov was among the many founders of what later grew to become Lukoil in 1993. The corporate accounts for about 15% of Russia’s oil output, second solely to state-controlled Rosneft PJSC. Its every day output averaged 1.61 million barrels from April 1 to 19, in keeping with knowledge from the Vitality Ministry’s CDU-TEK unit that’s been seen by Bloomberg.

In Russia, Lukoil’s major fields are positioned in West Siberia, in addition to developments on the north of the Caspian Sea. It additionally has upstream companies in some former Soviet nations, together with in Kazakhstan, Uzbekistan and Azerbaijan, the place it accomplished earlier this yr the acquisition of a further stake within the Shah Deniz offshore fuel mission operated by BP Plc.

One in all Lukoil’s largest tasks overseas contains the West Qurna-2 discipline in southern Iraq, which it operates. The corporate additionally has pursuits in a number of tasks on the African continent, and participates in a number of blocks in Mexico’s waters.

(Updates with shares, RBC report on interim CEO, from fourth paragraph.)

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