New Jersey

Newark Suspends Franchise-Owned Lukoil Gas Stations Licenses Due to Russian Invasion

The action is in direct response to the Russian invasion of Ukraine

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What to Know

  • New Jersey's largest city unanimously passed a resolution Wednesday to suspend the business license of local Lukoil gas stations -- an action prompted by Russia's invasion of Ukraine last week.
  • The measure was sponsored by Newark's North Ward Councilman Anibal Ramos Jr.
  • According to the city, which describes Lukoil as "Russian-owned" operates at least two gas stations in Newark, both on McCarter Highway. However, per the councilman’s office, the Lukoil stations in Newark are, in fact, franchised stations and not owned by Lukoil.

New Jersey's largest city unanimously passed a resolution Wednesday to suspend the business license of local Lukoil gas stations -- an action prompted by Russia's invasion of Ukraine last week.

The measure was sponsored by Newark's North Ward Councilman Anibal Ramos Jr.

According to the city, which describes Lukoil as "Russian-owned" operates at least two gas stations in Newark, both on McCarter Highway. However, per the councilman’s office, the Lukoil stations in Newark are, in fact, franchised stations and not owned by Lukoil.

The owner of one of the gas stations told News 4 New York he’s American and stands with Ukraine. Although he supports the sanctions against Russia, he doesn’t support this because this action may put him out of business. Additionally, he went on to say that he has more than a dozen employees, some who work part time.

According to the owner, he pays Lukoil North America which is based in New Jersey, and although he says it has some ties to Russia he is not sure how much. He says the oil he sells comes from an American company. 

NBC New York asked Ramos' office if whether in taking this vote, the Council has any plans for assisting the franchisee or the workers at these stations should they be forced to shut down if their business licenses are yanked. That currently remains unclear.

Ramos said that a bakery in town has offered employment to the impacted workers. He wants this to be temporary and hopes other municipalities in New Jersey to do the same to Lukoil stations in their areas.

It is also unknown is whether there is an appeals process involving the courts since the only basis for suspending these licenses is in response to the Russian invasion of Ukraine and not because of any violation of local or state laws.

Lukoil North America is a subsidiary of PJSC Lukoil, a Russian oil and gas company with deep ties to the Russian Federation and Russian oligarchs aligned with President Vladimir Putin, the city said.

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