Alliance’s existing Ukraine sites will be upgraded and re-branded as Shell sites in a joint venture that will be 51% owned by Shell and 49% owned by Alliance. Shell commented that the agreement is based on the success of six Shell-Branded retail sites that were established in the Kiev area in 2006. Shell reported that over a six-month trial period retail volumes have more than doubled.
With this joint venture we are delivering our strategy to invest in growing markets, said Rob Routs, executive director of Shell’s downstream business. Ukraine’s large population, projected GDP and its strategic location in Eastern Europe make it attractive and an important part of our future retail business in Europe, he added.
Musa Bazhaev, president of Alliance Group, commented: I am confident that our joint venture will be beneficial for both parties and will make an important contribution to development in the economic and social spheres in Ukraine.
The start of the joint venture’s operations is subject to obtaining regulatory approval.
