Lukoil Denies Conspiracy Allegations

Lukoil denies allegations made by small American firm, Green Oil, that it has conspired to artificially raise prices in the US.

Russia’s largest private oil company, Lukoil, denied accusations of engaging in conspiracy with Saudi company Aramco and Venezuelan state run company PdVSA to drive up the wholesale price for oil and petroleum products in the US market after American Green Oil Co. filed a suit demanding the 3 companies sell their American subsidiaries estimated to be worth over $25 billion.

“The Green Oil allegations, made in a claim filed with the Illinois District Court, are entirely untrue,” a Lukoil spokesman told RIA Novosti.

According to the lawsuit, Lukoil, Aramco and PvDSA colluded to fix production levels push up wholesale prices, delivering heavy damages to their customers in the US. RIA Novosti reports the Green Oil Co. claims the 3 companies struck a deal with oil companies in Oman, Mexico, Norway and Angola on January 1st 2002 to reduce production for 6 months. The allegations state that other parties, including Rosneft, were involved in the conspiracy, yet no charges have been filed against the Russian state-owned oil giant.

As reported by Lenta.ru, Lukoil spokesperson stated all the accusations will be meticulously examined in court.

Green Oil claims all of the clients of the aforementioned companies were harmed by the alleged actions of the defendants.

Lukoil started opening gas stations in the US in 2003 after purchasing assets of American Getty Oil in 2000. In 2004 Lukoil bought 779 gas stations from Mobil. Today, Lukoil owns more than 2000 filling stations in the US estimated to be worth around $4 billion.

Green Oil is a small American company owning a network of gas stations in Illinois. MANTA database reports Green Oil’s average annual turnover to be at the level of $31 million.

The first hearing is expected to be held on August 29th.

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