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Afrilatest.com > News > World > Shell withdraws from Russia due to invasion of Ukraine

Shell withdraws from Russia due to invasion of Ukraine

paul nwogo by dominicnwogo
in World
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  • Shell withdraws from Russia
  • Shell has approximately $3 billion in assets in Russia

Shell withdraws from Russia

Shell will stop all its activities in Russia because of the invasion of Ukraine, the oil and gas group reported Monday. Billions are involved in Shell’s withdrawal from Russia.

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Shell announced in a statement that it would terminate all partnerships with Russia’s Gazprom. More than 500 people work for Shell in Russia.

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Among other things, the group has a 27.5 percent interest in a large liquefied natural gas (LNG) project in eastern Russia, called Sakhalin-II. That project is owned by Gazprom. Last year Shell earned 700 million dollars (about 625 million euros) from this project alone.

In addition, Shell is working on projects in western and northwestern Siberia, also through interests. It is also the lender of the controversial Nord Stream 2 gas pipeline, which runs from Russia to Germany via the Baltic Sea.’

Shell withdraws from Russia

Shell withdraws from Russia
Shell withdraws from Russia due to invasion of Ukraine 3

Shell will stop all its activities in Russia because of the invasion of Ukraine, the oil and gas group reported Monday. Billions are involved in Shell’s withdrawal from Russia.

Shell announced in a statement that it would terminate all partnerships with Russia’s Gazprom. More than 500 people work for Shell in Russia.

Among other things, the group has a 27.5 percent interest in a large liquefied natural gas (LNG) project in eastern Russia, called Sakhalin-II. That project is owned by Gazprom. Last year Shell earned 700 million dollars (about 625 million euros) from this project alone.

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In addition, Shell is working on projects in western and northwestern Siberia, also through interests. It is also the lender of the controversial Nord Stream 2 gas pipeline, which runs from Russia to Germany via the Baltic Sea.

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Shell has approximately $3 billion in assets in Russia

At the end of last year, Shell had assets in Russia worth about 3 billion dollars (about 2.7 billion euros). The oil and gas group believes that the sale will yield less than its book value and that it will therefore suffer a loss.

“We are shocked by the loss of life in Ukraine due to a senseless act of military aggression that threatens European security,” said Ben van Beurden.

British BP announced on Sunday that it is selling part of its stake in Russian oil group Rosneft. That break was inevitable, according to BP chairman Helge Lund. 

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BP’s withdrawal may cost more than $25 billion. The Norwegian oil group Equinor also announced earlier that it would stop all its activities in Russia.

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