Shell to Exit Partnership With Russia's Gazprom

  • Stock Market News
Shell to Exit Partnership With Russia's Gazprom

By Sam Boughedda -- Shell (LON: RDSa ) PLC ADR (NYSE: SHEL ) said Monday it intends to exit its joint ventures with Russian state-owned energy company Gazprom (MCX: GAZP ) and related entities due to the Russia-Ukraine conflict.

The company said it will sell its 27.5% stake in the Sakhalin-II liquefied natural gas facility in Russia and its 50% stake in the Salym Petroleum Development and the Gydan energy ventures also in Russia. 

Furthermore, the company intends to end its involvement in the Nord Stream 2 pipeline 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 CEO Ben van Beurden.

“Our decision to exit is one we take with conviction,” added van Beurden. “We cannot – and we will not – stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia. 

"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.”

At the end of 2021, Shell said had around $3 billion in non-current assets in these ventures in Russia.

The announcement follows BP (NYSE: BP )'s decision over the weekend to exit its 19.75% stake in Rosneft, another Russian state-owned oil company.

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