NJ city council votes to revoke licenses of gas stations over Russian ties

The city council of Newark, New Jersey, has voted unanimously to suspend the business licenses of Russian oil company franchises within its community, specifically two Lukoil stations along one of its highways.

The council voted Wednesday to request that the city administrator freeze Lukoil franchises' ability to do business in Newark. 

The move was criticized by the business owner, who said at a press conference that he was against the Russian invasion and was an American citizen. However, North Ward Council Member Anibal Ramos, who sponsored the legislation, said that the temporary decision was not intended to harm local residents, and local companies are stepping up to offer employment as the war in Ukraine rages.

"We recognize that Lukoil PJSC is the second-largest oil producer in Russia," Ramos told Fox News Digital in an exclusive interview. "There are definitely ties between Lukoil and the Russian government … And a number of oligarchs are involved in the ownership. Since 2014, the U.S. has been imposing very targeted sanctions against Lukoil."

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"What we did is we passed a resolution asking the city's administrator to suspend the business license for Lukoil gas stations in Newark," the councilman explained. "We currently have two of those doing business in our city that in operation requires a municipal license."

"I stand with Ukraine, and I'm full in support of Russian sanctions, however I am baffled and confused how shutting down an American-based small business owner is sending a message to support," station owner Roger Verma told a local CBS affiliate.

Lukoil is the second-largest oil producer in Russia and is privately held by a collection of Russian oligarchs with direct ties to Russian President Vladimir Putin. The Lukoil stations in Newark are franchised, meaning they are owned by Lukoil North America, which is directly owned by the larger international corporation. 

While the gas pumps at these locations are reportedly filled with American oil products, the property itself is property of Lukoil, according to Ramos.

"The franchise owner himself, when he showed up at the press conference yesterday, acknowledged that the property where his franchise actually is located is owned by Lukoil directly," Ramos said. 

Fox News attempted to contact the two Newark stations owned by Lukoil but were unable to get through.

"For us, it's within our purview to grant business licenses within the city," Ramos said. "We recognize that Lukoil has direct ties to Russia, and Russia is right now leading the charge on this invasion of Ukraine and threatening the lives and actually resulting in the deaths of thousands of Ukrainians. This is the city of Newark standing in solidarity with the people of Ukraine in fighting for democracy."

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"It doesn't hurt Lukoil, and it doesn't hurt Russia," Sal Risalvato, executive director of the New Jersey Gasoline, Convenience Store and Automotive Association, told the local CBS outlet. "All Lukoil does is purchase gasoline from the Phillips 66 Refinery, the Bayway Refinery in Linden, they mark it up a couple of pennies and they sell it to the franchise small business owner that is leasing that property from them and purchasing the product from them."

However, the city is trying its best not to leave Lukoil employees within their community high and dry.

"We've had businesses within our city – Paramount Bakery is one of them, which is a large bakery located in Newark – that reached out to us prior to yesterday's council meeting and made an offer of employment to anyone who was displaced if the city did follow through," Ramos told Fox. 

"Our intentions here are not to punish anyone locally. I think Newark stands in solidarity with a number of democratic countries around the world that have imposed different sanctions on the Russian Federation in hopes that this conflict ends."

"Collectively, we can definitely ensure … that we have things in place to support local residents who could be affected. Today we got a call from a second employer who I haven't had a chance to follow up with," Ramos added.

Ramos says that Paramount Bakery and any other local employers helping to find work for Newark residents displaced by the sanctions are an example of community responsibility and willingness to stand united.

"I think the images that we see on a daily basis are horrific to all of us," Ramos said. "And Paramount Bakery is reaching out to a municipal official offering support during an action that the city is considering.

"The intentions of these actions is definitely not to harm people locally, but it's to send a unified message to the Russian Federation that we're not going to stand idly by while a million Ukrainians have to find refuge in other countries and people are dying every single day."