Finnish petrol station operator Teboil, owned by Russian Lukoil, announced on November 19 that it is preparing to shut down all of its stations in the Nordic country, as reported by Reuters. The decision comes as fuel supplies to the stations are running out amid US sanctions imposed on Lukoil.

 Lukoil acquired full control of Teboil in March 2005, and it has remained under its ownership since then. A statement from Teboil indicated that the stations will close in phases as soon as existing fuel stocks are sold out. Teboil operates almost 20 % of the nation’s total stations.

Last month, the United States imposed sanctions on Lukoil in response to Moscow’s involvement in the war in Ukraine, causing significant disruptions to the company’s operations abroad. As a result of the US sanctions, Lukoil declared force majeure at its prized West Qurna 2 oilfield after Iraq halted cash and crude payments. Furthermore, a contractor working for Lukoil cancelled plans to drill for petroleum off Romania, and Bulgaria is currently preparing to take over a Lukoil refinery. Teboil is the first Lukoil-owned international business to publicly confirm it will close down as a direct result of the sanctions.

The sanctions pressure led to the US administration giving clearance in November to potential buyers to engage in discussions about purchasing Lukoil’s non-Russian assets. Teboil had previously stated on November 17 that it expected Lukoil to sell the chain, as noted by Reuters.