Shell pledges to withdraw from all Russian oil and gas, apologies for buying Russian crude
The company said it would also shut all service stations in Russia, with the process starting immediately.
FollowOil major Shell on Tuesday announced it will stop buying Russian oil and gas as the CEO apologised for buying a cargo of Russian oil after the country's invasion of Ukraine. The company said it intends to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas (LNG) in a phased manner, aligned with new government guidance.
The company said it would also shut all service stations in Russia, with the process starting immediately.
In a statement, the company said, “Shell plc (Shell) today announced its intent to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas (LNG) in a phased manner, aligned with new government guidance.”
“As an immediate first step, the company will stop all spot purchases of Russian crude oil. It will also shut its service stations, aviation fuels and lubricants operations in Russia.”
Chief Executive Ben van Beurden said, “We are acutely aware that our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel – despite being made with the security of supplies at the forefront of our thinking – was not the right one and we are sorry.”
Namely, as reported by Reuters last Friday, Shell bought a cargo of Russian crude oil from Swiss trader Trafigura in S&P Global Platts window loading from Baltic ports at a record low of dated Brent minus $28.50 a barrel. According to Reuters, it was the first Russian crude deal in weeks to be seen in the window and the first trade of Russian crude since the invasion of Ukraine began on 24 February 2022.
Ben van Beurden continued, “As we have already said, we will commit profits from the limited, remaining amounts of Russian oil we will process to a dedicated fund. We will work with aid partners and humanitarian agencies over the coming days and weeks to determine where the monies from this fund are best placed to alleviate the terrible consequences that this war is having on the people of Ukraine.”
