Shell announced its plans for withdrawal from all Russian hydrocarbon business, including crude oil, petroleum products, gas, and liquefied natural gas (LNG) in “a phased manner aligned with new government guidance”.
“We are acutely aware that 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. As we have already said, we will commit profits from the limited, remaining amounts of Russian oil we will process to a dedicated fund. We will work with aid partners and humanitarian agencies over the coming days and weeks to determine where the monies from this fund are best placed to alleviate the terrible consequences that this war is having on the people of Ukraine,” said Shell Chief Executive Officer, Ben van Beurden.
“Our actions to date have been guided by continuous discussions with governments about the need to disentangle society from Russian energy flows while maintaining energy supplies. Threats today to stop pipeline flows to Europe further illustrate the difficult choices and potential consequences we face as we try to do this.”
The company stated that as a first step, it will stop all spot purchases of Russian crude oil and will not renew any more contracts. It will also shut its service stations, aviation fuels, and lubricants operations in Russia.
Shell added also that after discussing with the government, it is changing the supply chain to remove Russia soon.
“We will start our phased withdrawal from Russian petroleum products, pipeline gas, and LNG. This is a complex challenge. Changing this part of the energy system will require concerted action by governments, energy suppliers, and customers, and a transition to other energy supplies will take much longer,” Van Beurden elaborated.
“These societal challenges highlight the dilemma between putting pressure on the Russian government over its atrocities in Ukraine and ensuring stable, secure energy supplies across Europe,” said van Beurden. “But ultimately, it is for governments to decide on the incredibly difficult trade-offs that must be made during the war in Ukraine. We will continue to work with them to help manage the potential impacts on the security of energy supplies, particularly in Europe.”