‘We won’t sit idly by’: Shell ends $3bn partnership with Russian gas company Gazprom


February 28, 2022, 6:02 p.m. | Updated: February 28, 2022, 7:15 PM

Oil giant Shell has announced its intention to sell its stake in all joint ventures with its Russian partner Gazprom.

Photo: Getty/Alamy


Oil giant Shell has announced plans to sell its stake in all joint ventures with Russian gas company Gazprom following Vladimir Putin’s “senseless act of aggression” in Ukraine.

The company said it would sell its 27.5% stake in a Russian liquefied natural gas facility, a 50% stake in an oil project in Siberia and an energy joint venture.

He will also end his involvement in the Nord Stream 2 gas pipeline between Russia and Germany, which was suspended by ministers in Berlin.

Shell CEO Ben van Beurden said the company “cannot – and will not – sit idly by” as Putin’s troops descend on Ukraine.

“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,” van Beurden said.

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“Our decision to go out is the one we take with conviction.

“We cannot – and we will not – sit idly by. Our immediate objective is the security of our people in Ukraine and the support of our people in Russia.

“Discussing with governments around the world, we will also work on detailed trade implications, including the importance of a secure energy supply for Europe and other markets, in line with applicable sanctions.”

The oil giant also said it would no longer be involved in the Nord Stream 2 gas pipeline, which was to link Russia with Germany.

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Earlier today, Foreign Secretary Liz Truss named Gazprom as one of three million Russian companies that would not be able to access any funding from UK financial institutions under the new sanctions.

This means that Gazprom will find it difficult to refinance its debts in the years to come.

Shell Ukraine staff have been scrambling to manage the company’s response to the crisis on the ground, with Mr van Beurden saying: “Our immediate focus is the safety of our people in Ukraine and the support of our people in Russia.

“Discussing with governments around the world, we will also work on detailed trade implications, including the importance of a secure energy supply for Europe and other markets, in line with applicable sanctions.”

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The move comes after shadow climate secretary Ed Miliband called on other energy companies to follow BP’s lead and cut ties with Russia.

He said: “Shell should now follow BP and divest its Russian stakes to isolate the Putin regime. These investments are crucial for the Putin regime and these companies must act.

On Sunday, oil giant BP announced the end of its 19.75% stake in Russian oil company Rosneft.

The move sent its shares tumbling 7.5% on Monday despite rising prices for Brent Crude and natural gas.

BP said Russia’s attack on Ukraine represented a “fundamental shift” in how the company could operate there.

Rosneft is also partly owned by the Russian government, and BP has held a 19.75% stake in the company since 2013.

Chief Executive Bernard Looney also resigned from the Rosneft board with “immediate effect” and BP’s other Rosneft director, Bob Dudley, also resigned from the Rosneft board.

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