Global energy giant Shell has announced plans to end all of its joint ventures with Russian state-owned energy company Gazprom, following Russia’s invasion of Ukraine.
That includes the company’s 27.5% stake in the Sakhalin-II liquefied natural gas facility, a joint venture with Gazprom. It also includes Shell’s 50% stake in the Salym Petroleum Development, a joint venture with Gazprom Neft, and the Gydan energy joint venture.
Shell also intends to end its involvement in the Nord Stream 2 pipeline project, as one of five energy companies financing a 10% portion of the €9.5 billion ($10.7 billion) project.
At the end of 2021, Shell had around $3 billion (€3.4 billion) in non-current assets in these ventures in Russia.
Have you read?
Analysis: Impact of the Ukraine crisis on Europe’s energy markets
Energy markets react to Russian aggression
The news comes hot on the heels of bp’s announced exit from its partnership with Russian state-backed oil and gas giant Rosneft, and Norwegian state-owned Equinor’s intention to exit joint ventures in Russia.
“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.
“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.”
