Russia's Lukoil calls for end to Putin's war as U.S. gas stations targeted

vladispas/iStock Editorial via Getty Images

Lukoil (OTCPK:LUKOY), Russia's second largest oil producer and whose shares listed in London have lost 99% of their value this week, has called for a halt to fighting in Ukraine, making it one of Russia's first major companies to speak out against the invasion.

The company is facing calls for a boycott in the U.S., where there are 230 Lukoil gasoline stations mostly in New York, New Jersey and Pennsylvania.

New Jersey's largest city, Newark, recently voted to suspend the licenses of two Lukoil gas stations because of the company's ties to Russia, but the stations are owned by American franchisees and not directly owned by the Russian company.

The confusion is similar to a handful of other brands confused as being Russian, including Smirnoff vodka, whose origins are in Russia but the company is owned by U.K. British spirits firm Diageo (DEO -2.6%) and is manufactured in Illinois.

Lukoil recently reported its highest annual profit in at least seven years, rising to 773.4B rubles ($7.06B) in 2021 from 15.2B rubles a year earlier on sales of 9.435T rubles compared with 5.64T in 2020.

Stoxx, which operates Deutsche Boerse's Qontigo indices, this week said it plans to remove Lukoil and 60 other Russian companies from its indices.

Comments

[Moats and Income]

Putin will nationalize Russian companies and seize assets. Not your average investing risk…a red flag…

[bondsmoker]

@Moats and Income

Yeah - I think that's the likely scenario.

Many thinking (hoping) the Oligarchs will overthrow, or otherwise influence, Putin.

Reality is - the Oligarchs have no such power. They exist only to the extent Putin (and the military & FSB, which answer to him, not the Oligarchs) let them.

If the Oligarchs squawk, Putin - via the FSB - will just throw them in jail & nationalize their assets. The majority of the Russian populace would cheer such moves.

As for foreign-owned assets - those are for certain going to be nationalized.

[Moats and Income]

@bondsmoker yup…mob state becoming CCP China like…Russian populace cut-off from all west.

New N Korea?

[guugleizevil]

Best move ever would be for Lukoil to promote "Gas will cost what it costs in Russia" and subsidize .65 cent gas or whatever it costs for a week at all its stations -

[Zahiry]

What kind of judgment is this, our government put sanction on Russia but we 🇺🇸 investors are suffering all this. We can't buy and sell our stock what a unjustified decision for American investors.

[Robert1942]

@Zahiry It could always be worse. You could be trying to survive day to day if you lived in Ukraine.

[Zahiry]

@Robert1942 hello Robert I live in the country which had war for 20 years.

[guugleizevil]

@Robert1942 please with that BS

[Moomoo22u2]

Sure took them long enough to express their war outrage. Probably didn’t figure their shares would lose 99% of their value.

[Mr Briggens]

"(Bloomberg) -- Russia and Russian companies will be allowed to pay foreign creditors in rubles, according to a decree signed by President Vladimir Putin on Saturday, as a way to service debt while capital controls remain in place."

Read more at: www.bloombergquint.com/...

Enjoy your dividends!!!

[guugleizevil]

@Mr Briggens your first mistake is relying on Bloomberg

[bondsmoker]

@Mr Briggens

Service debt.....dividends are not debt-service, they are income distributions to equity.

In any event, from what I recall, Putin restricted the foreign debt-service rouble payments to only those countries which were not taking part in sanctions.

Pretty sure the bulk of investors here don't qualify...

[Mr Briggens]

@bondsmoker

I am pretty sure that we don't know what will happen. Lawyerly arguments are likely not going to matter one way or another.

I would not count on getting any return of capital let alone return on capital but I may be disappointed.

[Robo 707]

Sure did. Can’t you tell !!!

[repurposed graveyard of dreams]

"...the Lukoil stations in Newark are franchised stations and not directly owned by Lukoil.
Newark franchisee Roger Verma said that while he supports Ukraine, a suspension would cripple his business, which employs 16 workers.
'I’m baffled and confused how people sitting in these positions without having any of their facts together and without having full knowledge of how things are done can introduce and change laws and change people’s lives just like that,' Verma said..."

Sorry dude, this is the land of "Freedom Fries." -- shoot first, ask ?'s later.

[litwos]

The nfl combine is taking place at lukoil stadium this week.

[Safety Dance]

@litwos This is rabid disinformation being spread by a suspected NE Pats fan or some other Colts rival.

[Janman220]

@Safety Dance agreed, thought it may be a bitter Baltimore fan.

[my_symphony2003]

The company didn't lose value, what is lost is stock trader's money. That's a big difference.

[Tellurium128]

@my_symphony2003 well they are having to sell their oil at a $30/barrel discount to brent because no other countries want to touch it. So yeah, I'm gonna say the company did lose value

[bondsmoker]

@Tellurium128

Have you seen Brent pricing lately?

Pretty sure they'll be perfectly content, even at Brent - $30.

Indeed, it really is foreign investors who will take the ultimate blow.

I've long wondered how & why we allow Chinese companies to list on US exchanges, given the continued rampant abuse of foreign investors, zero accountability in the (often) instances of fraud, and geopolitical tensions with China.

Same issue, really, with Russia.

[User 3434471]

Ceaucescu awaits Putin in hell youtu.be/...

[whoisjohngaltmn]

@donfdraper ...lol....hopefully it's not a long wait!

[AlexS]

Because of the sanctions everything Russia produces is up in price and will be added to our inflation. Oil and gas, grain, metals, fertilizer. Higher sanction-caused inflation will cause the Feds to reach the wrong conclusion and tighten more, leading to a recession. Such is the product of our political "leadership".

[litwos]

@AlexS Yes and it has set my steel and aluminum stocks up like a rocket.

[AlexS]

@litwos Well be careful that your steel and aluminum stocks don't get toasted by the upcoming world-wide recession.

[bondsmoker]

@AlexS

Yeah, raising interest rates was long over-due. Now, its too late.

Inflation caused by over-heating economy from over-zealous investing can be tamed with interest-rate hikes.

Inflation (stagflation) caused by reductions in productivity cannot be tamed with interest-rate hikes.

[raykrv6a]

Russia was somewhat coming into the global economy. Now Putin has mucked it up and the people will suffer along with Russia becoming more isolated. Russian people need to retire Putin and his cronies.

[mrbuseco2]

@raykrv6a The U.S. and U.K. would NEVER have allowed Russia to take a place in the global economy...NEVER. Those two have been trying to keep Russia boxed up for at least my lifetime. NEVER!!!!

[Chaffey]

@mrbuseco2 United States , Canada and Europe all have big commitments and assets in Russia. Russia has been welcome to do Business in the West as well. Russia hasn't been boxed at all. Otherwise how would they have so much money in all of our banks. There is no defense of Russia. Besides it is Putin not Russia that we are worried about.

[mrbuseco2]

@Chaffey Just look at a map. The "west" has created a slew of "countries" around Russia to cutoff access to ocean trade routes. It took a war (which Russia won) against Sweden in 1703 for Russia to get access via St. Petersburg. Sweden was being backed by the U.K., Ottomans, Poland, et. al. to contain Russia much as we are seeing today. A second war with Sweden, again backed by the U.K. and "poking the bear", in 1908 created Finland (Because Sweden and the U.K. lost again) to prevent the U.K. backed Sweden from "placing forces too close to Russian borders". Now, Russia has a history of winning these types of wars so I think they will win again.

[pdrozin]

Kamala to the rescue on her way to Poland! Everything will be resolved once she gets on the ground and speaks to the powers that be. I am so relieved!

[AlexS]

@pdrozin Me too. The transgenders in Poland will know they have a friend.

[Austin Craig]

@AlexS LOL

[buckiowa]

@pdrozin

Maybe she can call Putin and tell him to “knock it off” like Obama did!🙄

[Ol' Hickory]

If Diageo wants to convey Smirnoff's Illinois roots they should rebrand it as "Corruption" vodka.

[Dmax1]

@NWdividend Dillinger?

[Robert S Dot]

All hail to Vladimir, the bringer of peace !

[Diesel]

Russia is a kingdom owned by one man and everyone else simply listens to that one guy. It doesn't matter what Russians think. Russia will only do whatever putin wants since he literally owns the country and everyone living in it.

[SqueakyToy]

@Diesel Let's see how large the internal Russian protests get. At a certain size, his position becomes increasingly untenable. You can't arrest millions at once.

Already, we see a handful of billionaire tycoons bravely jumping ship even though they understand defying Putin carries a potentially steep cost. I suspect they're betting on a popular uprising to come.

[Julian Beatty]

@SqueakyToy As much as I hope this to be true, I think we are not there yet. The sanctions need to be much tougher to stoke widespread unrest. If the sanctions escalate to restricting their gas/energy exports, and disconnect their internet infrastructure, then maybe.

[SqueakyToy]

@Julian Beatty The sanctions are already having significant impact, and will only grind down the Russian government even further as they work their devastation throughout the economy. Most likely, additional new sanctions are yet to come which will only extend the Russian losses beyond what's projected.

Putin has set back his country for at least a couple generations, if not longer. seekingalpha.com/...

[Guy.a]

"lost 99% of it's value"this dip needs to be bought.

[nmcoyote1]

@Guy.a Sadly, there is no way to buy.

[Guy.a]

@nmcoyote1 well you could, indirectly, through RSX.

[Reidar Herreid]

@nmcoyote1 you can buy on etrade through the ticker symbol

[vvvviking]

I would still boycott them.

[ding dong]

As always a large section of the politicians in the US are worried about democracy in other countries but didn't say a peep on Jan/6/21.

Democracy for you, Oligarchy for me.

[AlexS]

We've just gotten over our Biden-driven media-driven campaign to mask everyone in sight. Only to be replaced by our Biden-driven media-driven campaign to hate everything Russian in sight. Will our madness never stop?

[Austin Craig]

@AlexS No, not going to stop. This is Bidens war.

[Frugal Investor]

@Austin Craig Biden didn't start this war.

[SqueakyToy]

It is Putin's war, and Putin's alone.