Shell to Withdraw its Activities from Russia

Shell to Withdraw its Activities from Russia

The Board of Shell has announced its decision to exit its joint ventures with Gazprom and related entities due to Russia’s invasion of Ukraine.

This decision will include Shell’s 27.5 % stake in the Sakhalin-II liquefied natural gas facility in addition to its 50% stake in the Salym Petroleum Development and the Gydan energy venture. The company stated that it will also end its involvement in the Nord Stream 2 pipeline project.

“We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security,” said Shell’s chief executive officer, Ben van Beurden.

Shell elaborated that its staff in Ukraine and other countries are in close cooperation to manage the company’s response to the crisis locally. It added that it will also work with humanitarian agencies and aid partners to support the relief effort.

“Our decision to exit is one we take with conviction,” said van Beurden. “We cannot – and we will not – stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia. In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions.”

Shell said in a statement that its withdrawal from Russia will impact the book value of Shell’s Russia assets and lead to impairments. However, it affirmed that its Powering Progress strategy and financial framework will remain as it is.

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