Shell has announced its withdrawal from Russia, citing President Vladimir Putin’s invasion of Ukraine as a loss of international investment and knowledge in the country’s vital energy business.
Shell said on Monday that it will exit its joint ventures with Gazprom and allied organisations, including its 27.5 percent interest in the Sakhalin-II liquefied natural gas project, its 50% ownership in Salym Petroleum Development, and the Gydan energy venture.
Shell also plans to exit the Nord Stream 2 pipeline project. “We are shocked and condemn the loss of life in Ukraine as a consequence of a mistaken act of armed action that affects European security”, said Shell CEO Ben van Beurden.
The transaction comes only one day after competitor BP disclosed intentions to sell a nearly 20% share in Rosneft, which is owned by the Russian state. Also on Monday, Norway’s Equinor announced a halt to new investment in Russia and the start of a sale of its interests in the nation.
Shell’s most significant investment in Russia is its part in the Sakhalin-II project in the seas off Russia’s east coast near Sakhalin Island. Mitsui, located in Japan, controls 12.5% of the project, while Mitsubishi owns 10%.