(Bloomberg) – Shell Plc, Europe’s largest oil company, continues to buy oil and gas from Russia following the country’s invasion of Ukraine, according to a person briefed on the matter. .
The company is in discussions with governments and will comply with any regulatory changes, the person said.
The move could help calm a market in oil trading and shipping that has become paranoid about touching Russian barrels for fear of a sanctions backlash after the invasion. The person did not elaborate on the details of the purchases.
While Shell said on Monday it was pulling out of its assets in Russia – including its stake in the major liquefied natural gas plant Sakhalin-2 – the company is also an oil and gas trading giant, processing around 12 million barrels per day of oil.
Since the invasion, tanker companies have been wary of collecting Russian oil, which has led to skyrocketing freight costs.
Prices for Russia’s main export crude, the Urals, have fallen to record prices as traders increasingly shun the grade and refineries rush to secure alternative supplies on other markets. However, no sanctions are currently in place to prevent companies from buying crude, refined products and gas from Russia.
(Updates with the context of the third paragraph.)
©2022 Bloomberg LP