No more Russian oil and gas for Shell. The energy oil giant runs for cover after last week's controversies, announcing a real u-turn that could have significant impacts on theMoscow economy.
Shell says goodbye to Russian oil and gas
Shell has in fact announced its intention to give up supplies of Russian oil and gas. A stop that will come gradually, but which the group considers necessary after the Russian invasion of Ukraine. The decision also includes the Immediate end of all spot purchases of Russian oil.
The company also disclosed that it will close its gas stations, aviation fuels and lubricants in Russia and will not renew any Russian futures contracts. “We will consider very carefully the safest way to do this – Shell wrote in a note – but the process will start immediately. We will start ours phased withdrawal from Russian petroleum products, from the pipeline and LNG. This is a complex challenge."
The apology after the controversy: "We were wrong"
In the same note, Shell also apologized for having bought a shipment of Russian oil after the war had already begun. Among other things, the group had bought crude oil at prices well below market quotations, paying it $28,5 less than the cost of the Brent, making a profit of $24 million. A choice that had triggered a shower of controversy and fierce criticism, starting with those of the Ukrainian foreign minister Dmytro Kuleba who asked the company: "Don't you realize that this oil smells like Ukrainian blood?"
Shell was therefore forced to take measures, announcing its intention to devolve the profits of the operation to a fund for Ukrainian refugees.
"We are acutely aware that our decision last week to purchase a shipment of Russian crude oil to be refined into products such as petrol and diesel - said Shell CEO Ben van Beurden - despite being made with safety in mind first of supplies – it was not the right one and we apologize for that".
“Our actions to date have been guided by ongoing discussions with governments on the need to disengage energy flows from Russia while maintaining energy supplies,” Beurden continued. Threats to stop pipeline flows to Europe explain even more the difficult choices and the potential consequences that we have to face as we try to do this. These societal challenges highlight the dilemma between pressuring the Russian government for its atrocities in Ukraine and ensuring stable and secure energy supplies across Europe. But in the end – concluded the Shell CEO -, it is up to the governments to decide on the incredibly difficult compromises that must be made during the war in Ukraine”.
