Ukraine war prompts WEX to cut ties with Russian oil conglomerate

File photo / Courtesy WEX WEX Inc. is a global financial technology service provider headquartered in Portland.

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WEX (NYSE: WEX), the Portland-based financial technology services provider, said Friday that in light of the war on Ukraine, the company will discontinue its relationship with Lukoil PJSC, an energy conglomerate headquartered in the Russian capital of Moscow.

"From the start of the war in Ukraine, WEX has compiled with all sanctions to aid in bringing a swift resolution to the situation," WEX said in a statement on LinkedIn Friday afternoon.

WEX, whose business includes fuel management solutions as well as trucking fleet cards overseas, noted that it is not doing any business in Russia, and does not have any employees or office locations in the country.

"As the war has continued, with no foreseeable resolution in sight, we reevaluated our relationship with Lukoil, and have decided to discontinue this relationship," WEX said. "We want to go beyond what is required of us to ensure that none of our operations contribute, in any way, to adding or supporting [Russian President Vladimir] Putin's aggressive actions.

"We have been thoughtful about this decision to ensure we have proper support in place to minimize the impact on our customers."

Lukoil is one of the world's largest oil and gas companies, accounting for more than 2% of crude production and 1% of provided hydrocarbon reserves globally, according to the Russian company's website.

WEX shares closed 3.44% lower Friday at $172.53, giving the stock a market value of around $7.73 billion. Shares have lost close to 20% of their value over the past year.

The company recently reaffirmed its financial growth targets for the next five years.

In February, WEX posted fourth-quarter earnings and revenues that exceed market expectations and issued first-quarter and full-year 2022 guidance.