Lukoil Ecoenergo, a unit of Russian oil company Lukoil and the Italian producer of renewable energy, ERG Renew have recently signed an agreement for a joint venture that will develop solar and wind power capacities in Bulgaria and Romania.

The established company, named LUKErg Renew, will be headquartered in Vienna. Its projects will initially focus on Bulgaria and Romania, and will further expand to Ukraine and Russia.

LUKErg Renew's business plan will be reviewed in June and approved by the end of this year. The creation of the new company is part of Lukoil's strategy to enter the renewable energy business.

Lukoil is the largest Russian company in the field. Its oil reserves represents 1.3 percent of world's reserves and the company has an annual turnover of USD 81 billion and a net income of USD 9.5 billion.

Lukoil Group is present on the Romanian market through its subsidiary Lukoil Romania, which has over 310 gas stations. In 1998, the group acquired Petrotel Ploiesti refinery.

Irina Popescu, irina.popescu@romania-insider.com