Lukoil revamps petroleum supply model in Russia, Tsentrnefteproduct transfers operations to Licard
MOSCOW. March 31 (Interfax) - Lukoil has decided to modify its petroleum supply operational model in Russia.
The implementation plan for the first phase of operational efficiency improvements, approved by the company in October last year, involves transferring petroleum product procurement and logistics functions from Lukoil-Tsentrnefteproduct LLC to Licard LLC.
Lukoil-Tsentrnefteproduct, a 100% subsidiary of PJSC Lukoil, operates wholesale and retail petroleum product sales in Moscow, Nizhny Novgorod, the Bryansk, Vladimir, Kaluga, Lipetsk, Moscow, Nizhny Novgorod, Oryol, Ryazan, Smolensk, Tambov, Tver, Tula and Yaroslavl regions, and the republics of Mari El, Mordovia, Tatarstan and Chuvashia. The enterprise comprises seven oil depots and over 640 filling stations.
According to Lukoil-Tsentrnefteproduct's annual report, per the January 20, 2025 order, the supply management and logistics department will be removed from its structure. A comprehensive service agreement will be signed with Licard LLC for product receipt, storage and distribution. Ownership of products will transfer to Licard during storage, reverting to Lukoil-Tsentrnefteproduct upon depot-to-station distribution. Starting April 1, 2025, small-scale wholesale operations will be handled by Licard. Small-scale wholesale accounted for no more than 4.8% of Lukoil-Tsentrnefteproduct's total gross income in Q2-Q4 2025. The subsidiary's 2024 net profit decreased 13.5% to 12.4 billion rubles.
Lukoil-Inter-Card LLC (Licard) specializes in petroleum product supply using Lukoil fuel cards, providing agency services for international petroleum product transactions and fuel card servicing. As of December 31, 2024, 3,255 stations were equipped with specialized fuel card terminals, including 2,478 at Lukoil Group stations. Fuel card sales to corporate clients grew 1.1-fold to 5,340 million liters in 2024, while loyalty card sales to individuals decreased 1.8% to 7,214 million liters. The company's net profit increased 38.9% to 6.4 billion rubles in 2024.
Lukoil owns 99.96126% of Licard, with K.N.Holding LLC owning 0.03874%. Alexei Filippov serves as Licard's general director.
