Shell has clinched a deal to sell the 411 petrol stations it operates in Russia and the Torzhok lubricants blending plant to LUKOIL.
The deal is subject to approval by Russian competition regulators and no financial details were disclosed.
Shell said that more than 350 people currently employed by the operations covered by the deal will transfer to the new owner.
The agreement followed Shell's announcement in early March of the group’s intention to withdraw from all Russian hydrocarbons in a phased manner.
However, when Shell announced first quarter results last week, chief executive Ben van Beurden said it was making progress with efforts to dispose of its interests in Russia. The group booked a $3.9bn first quarter charge related to the phased withdrawal from Russian oil and gas activities.
LUKOIL said the acquisition of Shell’s high-quality businesses in Russia fits well into its strategy to develop its priority sales channels, including retail, as well as the lubricants business.
Founded in 1991, LUKOIL is the second largest producer of crude oil in Russia after Rosneft.
BP announced plans to sell its stake in Rosneft after Russia invaded Ukraine.
A range of other oil and gas firms have said they will quit Russia.
In March US giant ExxonMobil said it would discontinue operations at Sakhalin-1 and make no new investments in Russia.
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