Lukoil, the Russian oil producer, will terminate the operations of its Finnish subsidiary Teboil, which operates one of the country’s largest fuel station networks. This decision comes as fuel supplies dry up, with deliveries suspended due to economic sanctions imposed by the United States. Teboil confirmed that stations will close in phases as remaining fuel reserves are depleted.
US sanctions disrupt fuel supply
Last month, the United States sanctioned Lukoil as part of reinforced measures against Russia linked to the war in Ukraine. Although the US administration authorised negotiations for the sale of Lukoil’s non-Russian assets, no transaction involving Teboil has been finalised. The Finnish company had already anticipated a change of ownership, mentioning Lukoil’s ongoing efforts to divest its foreign assets.
A strategic network in the Finnish energy landscape
Teboil currently operates 430 stations across Finland, accounting for nearly 20% of the country’s 2,250 petrol stations, according to figures published in 2024 by an industry trade group. This significant market share positioned Teboil as a key player in Finland’s fuel distribution sector, with a strong nationwide presence.
Increased caution from Finnish financial institutions
In response to recent developments, Finland’s Financial Supervisory Authority reiterated in October that banks and other regulated institutions must exercise caution in dealings with Lukoil or any of its directly or indirectly owned subsidiaries. This warning aimed to minimise regulatory and legal risks associated with sanctioned entities.
Uncertainty over future asset ownership
No timeline or potential buyers have been disclosed regarding the possible sale of Teboil. In the meantime, operations continue until all fuel stocks are exhausted. However, the halt in supplies makes the full closure of the network inevitable in the short term, with potential consequences for employment and local fuel distribution.
