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Financial Times: Shell in Ukraine deal with Alliance

By Roman Olearchyk

Published: August 1 2006 03:00 | Last updated: August 1 2006 03:00

Royal Dutch Shell has reached a marketing accord with Moscow’s Alliance Group, which has agreed to re-brand some of the 100 petrol stations it operates in Ukraine under the Shell name.

The trademark licensing agreement will bring Ukraine its first petrol filling stations operating under the brand of a western oil major. Ukraine’s petroleum market is dominated by Russian oil giants, which supply Kiev with a majority of its crude needs and control the largest oil refineries in the country.

BP has a share in Ukraine’s petroleum market through its interest in TNK-BP, which supplies a franchise of 1,000 petrol filling stations in Ukraine operating under the TNK brand.

The re-branding of petrol stations in Ukraine is a continuation of an existing partnership between Shell and Alliance Group, which have co-operated in the Russian market since 2001. “Shell believes Ukraine is an attractive market for us and a country with a high potential for economic growth,” said Les Lastoweckyi, the company’s representative in Ukraine. Roman Olearchyk, Kiev

Copyright The Financial Times Limited 2006

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