London/Paris (CNN Business) — One of Russia’s wealthiest men has just resigned from his post as CEO of Lukoil, the country’s second largest oil company.
In a brief statement published on Thursday, Lukoil said that Vagit Alekperov informed the company “about his decision to resign” as director and president of the company.
The company did not disclose the reason for Alekperov’s resignation. But the announcement comes just days after it was sanctioned by the UK and seven weeks after Lukoil broke ranks with President Vladimir Putin and called for an end to Russia’s war in Ukraine.
Archyde.com reported that Alekperov had decided to resign after being sanctioned to protect the company’s operations, citing a source familiar with the matter.
Lukoil produces more than 2% of the world’s crude oil and employs more than 100,000 people. It operates in dozens of countries and is the second Russian oil company, behind the state giant Rosneft.
Lukoil’s board of directors said in a statement to shareholders, staff and customers in early March that it “calls for an end to the armed conflict as soon as possible.”
“We express our sincere empathy with all the victims affected by this tragedy. We strongly support a lasting ceasefire and the resolution of issues through serious negotiations and diplomacy,” the council added.
Alekperov has a fortune valued at $16 billion, according to the Bloomberg Billionaires Index. Earlier this month, the UK froze his assets and barred him from entering the country.
Lukoil said Thursday that, as of March 31, Alekperov owned just over 3.1% of the company’s voting shares, plus another 5.4% through family trusts or non-voting investment funds. vote.
“Therefore, Vagit Alekperov is not a majority shareholder,” he added.
Lukoil now faces big challenges, as traders and oil companies shy away from Russian crude. Life could get even more complicated in the near future, as Europe is considering joining the US-led ban on Russian oil.
Moscow-listed Lukoil shares have lost about 28% of their value since the invasion. On Thursday they fell more than 2%.
The oil giant has faced boycott petitions in the United States, where there are 230 Lukoil service stations owned by American franchisees. Most of the service stations bearing the Lukoil brand are in New York, New Jersey and Pennsylvania.