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Shell apologises for last week’s purchase of Russian crude oil and announces withdrawal from Russian oil and gas

Following last week’s decision to end its involvement in the Nord Stream 2 pipeline project and equity partnerships with Gazprom, Shell now announces that it will withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas (LNG).

The company will stop purchases of Russian crude oil immediately and shut its service stations, aviation fuels as well as lubricants operations in Russia.

“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”, Shell Chief Executive Officer, Ben van Beurden noted.

“As we have already said, we will commit profits from the limited, remaining amounts of Russian oil we will process to a dedicated fund,” he added. “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.”

According to the press statement of Shell, following the government statements this week, the company is changing its crude oil supply chain to remove Russian volumes.

“We will do this as fast as possible, but the physical location and availability of alternatives mean this could take weeks to complete and will lead to reduced throughput at some of our refineries”, Mr Beurden said.

As for phased withdrawal from Russian petroleum products, pipeline gas and LNG, Shell underlines that the process will require concerted action by governments, energy suppliers and customers. Based on this projection, the company warns that a transition to other energy supplies will take much longer.

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