Sky News
Ukraine war: Shell turns its back on all Russian oil and gas and says ‘sorry’ for purchases last week
The firm says its decision holds “potential consequences” as market experts warn that it will be impossible to replace Russian oil and gas volumes if it is stripped away under US proposals for a wider boycott.
@SkyNewsBiz: Tuesday 8 March 2022
: Business reporterShell has revealed further plans to turn its back on Russia over the invasion of Ukraine by saying it will stop “all involvement” with the country’s oil, gas and other hydrocarbon products.
The UK-based oil and gas giant’s chief executive announced the decision after a backlash over a Russian oil deal last week as sanctions gathered intensity, prompting the company to pledge that the profits would go to Ukraine relief efforts.
Ben van Beurden said on Tuesday: “We are acutely aware our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel – despite being made with security of supplies at the forefront of our thinking – was not the right one and we are sorry.”
Shell said on Tuesday that it would halt all spot purchases of Russian crude oil as an immediate first step, as part of a phased exit plan that would also include the closure of its 500 branded service stations.
The company had already revealed a week ago that it intended to end its involvement in the Nord Stream 2 pipeline project and exit its equity partnerships with Gazprom, including its 27.5 % stake in the Sakhalin-II liquefied natural gas facility.