Russia approves Aggreko’s Eurasia business sale

Reuters has reported that Russian President Vladimir Putin has officially approved the sale of Aggreko’s Russian business to BurService, a Russian oil and gas services company. The news agency said the approval was published on the Russian government portal on Monday.

BurService is an oil and gas industry services company that emerged following the 2022 exit of Halliburton from Russia. The company’s management team comprises former Halliburton employees.

Based in Ufa, the capital of Bashkortostan region, it operates throughout Russia and Eurasia, has 500 employees, and manufactures and rents drilling tools and equipment.

Aggreko announced in April that it had agreed to sell its Eurasian power rental businesses—including Russian and Kazakhstan operations—for US$29 million to an unnamed buyer, subject to Russian government approval.

Reuters said neither BurService nor Aggreko had immediately responded to requests for comment.

Aggreko reported that the sales price comprised $21 million for the Russian segment and $8 million for Kazakhstan. Albion JVCo, Aggreko’s owner, said it would take an $82 million impairment charge on the sale once completed.

The Russian business reported revenues of $106 million for the year ending December 28, 2024, while the Kazakhstan’s operations reported $8 million in sales.

The sale follows a three-year effort by Aggreko to divest these assets, initiated after Russia’s invasion of Ukraine.

Before identifying the current buyer, Aggreko had intended to transfer the businesses to a new, separate company created for the purpose of divestment by its private equity owners, TDR Capital and I Squared Capital Advisors.