Getty Images

Shell will end all joint ventures with Russian majority state-owned oil company Gazprom in response to the invasion of Ukraine, the oil company announced Monday.

As part of the divestiture, Shell will withdraw from its 27.5 percent Sakhalin-II liquefied natural gas facility and its 50 percent stake in Salym Petroleum Development. The company will also drop its involvement with the Nord Stream 2 pipeline, which was set to carry natural gas from Russia to Germany. Germany itself decertified the pipeline in response to the invasion before it could go online, and it remains unclear if it will begin operations at any point in the future.

Shell owned a 10 percent stake in the pipeline, and had about $3 billion overall in “non-current” assets in Russia, as of late 2021.

“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,” CEO Ben van Beurden said in a statement. “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.”

The announcement comes a day after another major oil company, BP, announced its own divestment from its 20 percent stake in Russian oil company Rosneft.

“Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region. bp has operated in Russia for over 30 years, working with brilliant Russian colleagues. However, this military action represents a fundamental change. It has led the bp board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue,” BP Chairman Helge Lund said in a statement Sunday.

Tags divestment invasion Oil companies Russia Russian economy Shell Ukraine

Most Popular

Load more


See all Video