Lukoil, Russia's second largest oil producer, bought a 45 per cent stake in a Dutch refinery from France's Total, moving on ambitions to expand its presence in western Europe, the company said.
"We expect that the value of the deal will be worth about €520 million, including the price of the oil reserves and oil products," Mr Lukoil said in a statement.
The deal should be finalised this year, it added.
Lukoil's announcement coincided with a state visit by Russian President Dmitry Medvedev to The Netherlands.
In recent years, the Kremlin has pushed hard for Russian firms to build partnerships and expand abroad in a bid to cull foreign know-how and bolster the country's influence.