Energy giant Shell to end partnership with Russia's Gazprom as Ukraine conflict intensifies

Energy giant Shell to end partnership with Russia’s Gazprom as Ukraine conflict intensifies

Shell mentioned Monday it’s ending an “equity partnership” with Gazprom, a Russian state-owned power firm, as the Russia-Ukraine conflict continues.

Shell mentioned it is promoting a 27.5% stake in Sakhalin-II, an built-in oil and gasoline mission situated on the Sakhalin island in Russia, as nicely as a 50% curiosity in Salym Petroleum Growth N.V., “a joint venture with Gazprom Neft that is developing the Salym fields in the Khanty-Mansiysk Autonomous District of western Siberia.” The corporate additionally mentioned it is ending its involvement within the Nord Stream 2 pipeline mission.

“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 CEO Ben van Beurden mentioned in an announcement.

“Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia,” van Beurden added. “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’s announcement comes a day after rival BP mentioned it was offloading its 19.75% stake in Rosneft, one other Russian-controlled oil firm. In the meantime, the U.S. — alongside with different international locations — has ramped up sanctions towards Russia following its invasion of Ukraine.

The corporate mentioned that it had about $3 billion in “noncurrent assets” by way of its Gazprom ventures on the end of 2021, noting that exiting these investments will “impact the book value of Shell’s Russia assets and lead to impairments.”

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