Shell follows BP in Russian exit

Shell also intends to end its involvement in the Nord Stream 2 pipeline project.

The Board of Shell is considering an exit of its joint ventures with Gazprom and related entities, including its 27.5% stake in the Sakhalin-II liquefied natural gas facility, its 50% stake in the Salym Petroleum Development and the Gydan energy venture.

Shell also intends to 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’s staff in Ukraine and other countries has been working together to manage the company’s response to the crisis locally. Shell will also work with aid partners and humanitarian agencies to help in the relief effort.

“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,” said van Beurden.

At the end of 2021, Shell had around $3 billion in non-current assets in these ventures in Russia. “We expect that the decision to start the process of exiting joint ventures with Gazprom and related entities will impact the book value of Shell’s Russia assets,” added the company.

Shell follows bp’s announcement that it was leaving Russia after 30 years of operation, taking a hit of up of up to $25 billion.