Multinational oil and gas company Shell announced its intention to exit its joint ventures with Russian energy giant Gazprom and related entities, including its 27.5 per cent stake in the Sakhalin-II liquefied natural gas facility, its 50 per cent stake in the Salym Petroleum Development and the Gydan energy venture.
Shell also intends to end its involvement in the Nord Stream 2 pipeline project. In fact, Shell is one of five energy companies that have each committed to provide financing and guarantees for up to 10 per cent of the estimated 9.5 billion euros total cost of the project.
“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,” said Shell’s chief executive officer, Ben van Beurden.
Shell’s staff in Ukraine and other countries has been working together to manage the company’s response to the crisis locally. Shell will also work with aid partners and humanitarian agencies to help in the relief effort.
“[…] 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,” continued van Beurden.
The decision follows bp’s to also exit its shareholding in Russian integrated energy company Rosneft, in which it had 19.75 per cent shareholding since 2013.