Shell exits Russian operations over Ukraine invasion

Oil giant Shell said on Monday it will exit all its Russian operations, including its involvement in the Nord Stream 2 pipeline from Russia to Germany, which it helped finance as a part of a consortium of companies.

Shell will also end its relationship with the flagship Sakhalin 2 LNG plant in which it holds a 27.5 per cent stake, and which is 50 per cent owned and operated by Russian gas giant Gazprom.

“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,” Shell Chief Executive, Ben van Beurden said in a written statement.

Shell said leaving the ventures in Russia will lead to financial impairments, since Shell had about $3 billion in non-current assets tied to such operations in Russia at the end of 2021.

The decision comes a day after rival bp abandoned its stake in Russian oil giant Rosneft in a move that could cost over $25 billion.