HomeNewsShell Follows Rival BP in Exiting Russia Following Ukraine Invasion

Shell Follows Rival BP in Exiting Russia Following Ukraine Invasion

by Samantha Whidden
(Photo by Justin Sullivan/Getty Images)

Following its rival BP, oil industry company Shell announced it is planning to exit Russia in the wake of the country’s invasion into Ukraine.

In a statement, Shell declared its intention to exit its joint ventures with Russia’s Gazprom and related entities. This also includes its 27.5% stake in the Sakhalin-II liquefied natural gas facility; its 50% stake in the Salym Petroleum Development; and the Gydan energy venture. The company then notes it is planning to end its involvement in the Nord Stream 2 pipeline project. 

Shell CEO, Ben van Beurden, spoke about cutting ties with Russia. “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. Our decision to exit is one we take with conviction. We cannot – and we will not – stand by.”

Van Beurden also says that the company’s focus is the safety of its people in Ukraine and supporting its 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.”

Shell further discloses that at the end of 2021, it had around $3 billion in non-current assets in the ventures in Russia. “We expect that the decision to start the process of exiting joint ventures with Gazprom and related entities will impact the book value of Shell’s Russia assets. And lead to impairment.”

Armed Forces From Russia Hit Ukrainian Capital With Rockets As the War Rages On 

Meanwhile, armed forces from Russia have reportedly continued to hit the Ukrainian capital Kyiv with rockets near a TV tower. This latest attack came after Russia threatened “high-precision” strikes. 

CNN reports that Russia has shifted to an aggressive bombing campaign. It has increasingly hit civilians. The Freedom Square in Ukraine’s second-largest city, Kharkiv, was also targeted by rockets. This attack killed more than ten people. 

In the midst of the attacks by Russia, Ukrainian President Zelenskyy has been pleading for the country’s immediate membership into the European Union in order to protect civilians from more bombings. 

Kyiv Mayor, Vitali Klitschko, is also warning citizens that the enemy is on the outskirts of the capital. However, the Ukrainian armed forces are preparing to defend Kyiv. “Fortifications and checkpoints have been built at the entrances to the city. I ask everyone to keep calm. Do not go outside unnecessarily and stay in shelters in case of alarm.”

It was also reported that Russia’s advance into the Ukrainian capital remains “basically” where it was yesterday. A senior defense official states that fuel and sustainment problems are the key reasons as to why the Russian military is struggling to continue.