See Shell’s latest statements in response to the war in Ukraine.
Updated : May 25, 2022 10:30
Shell completes sale of retail and lubricants businesses in Russia
Shell Overseas Investments B.V. and B.V. Dordtsche Petroleum Maatschappij, subsidiaries of Shell plc, have completed the sale of Shell Neft LLC, Shell’s retail stations and lubricants business in Russia, to PJSC LUKOIL. This follows the receipt of all necessary regulatory approvals.
The sale agreement was announced on May 12, 2022. All people currently working for Shell Neft, more than 350 in total, will remain employed by Shell Neft, which is now owned by LUKOIL.
The transaction is part of Shell’s wider withdrawal from all Russian hydrocarbons which is being conducted in a phased manner, in line with its announcement in early March. The sale has been carried out in full compliance with all applicable laws and regulations.
Updated : May 12, 2022 10:30
Shell signs agreement to sell retail and lubricants businesses in Russia
Shell Overseas Investments B.V. and B.V. Dordtsche Petroleum Maatschappij – subsidiaries of Shell plc – have signed an agreement to sell Shell Neft LLC, which owns Shell’s retail and lubricants businesses in Russia, to PJSC LUKOIL.
The deal includes 411 retail stations, mainly located in the Central and Northwestern regions of Russia, and the Torzhok lubricants blending plant, around 200 kilometres north-west of Moscow.
“Our priority is the well-being of our employees,” said Huibert Vigeveno, Shell’s Downstream Director. “Under this deal, more than 350 people currently employed by Shell Neft will transfer to the new owner of this business.”
“The acquisition of Shell’s high-quality businesses in Russia fits well into LUKOIL’s strategy to develop its priority sales channels, including retail, as well as the lubricants business,” said Maxim Donde, LUKOIL’s Vice President for Refined Products Sales.
The agreement with LUKOIL follows Shell’s announcement in early March of its intention to withdraw from all Russian hydrocarbons in a phased manner, and will be carried out in full compliance with applicable laws and regulations.
The sale is expected to be completed later this year, subject to regulatory approval.
Updated : March 8, 2022 10:30
Shell announces intent to withdraw from Russian oil and gas
Shell plc (Shell) today announced its intent to withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas (LNG) in a phased manner, aligned with new government guidance. As an immediate first step, the company will stop all spot purchases of Russian crude oil. It will also shut its service stations, aviation fuels and lubricants operations in Russia.
Shell CEO Ben van Beurden said: “We are acutely aware that our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel – despite being made with security of supplies at the forefront of our thinking – was not the right one and we are sorry. As we have already said, we will commit profits from the limited, remaining amounts of Russian oil we will process to a dedicated fund. We will work with aid partners and humanitarian agencies over the coming days and weeks to determine where the monies from this fund are best placed to alleviate the terrible consequences that this war is having on the people of the Ukraine.”
“These societal challenges highlight the dilemma between putting pressure on the Russian government over its atrocities in Ukraine and ensuring stable, secure energy supplies across Europe”.
Updated : March 5, 2022 18:30
Statement on the purchase of Russian crude oil
We are appalled by the war in Ukraine and have already made clear our intention to exit joint ventures with Gazprom — which is majority-owned by the Russian government — and related entities, as well as intending to end our involvement with a significant project to pipe gas from Russia to Europe.
We have been in constant discussion with governments about the consequences of the war on the security of energy supplies. We have acted throughout in accordance with what we have understood was the intent to allow energy flows from Russia for the time being in order to provide security of energy supply.
Yesterday we made the difficult decision to purchase a cargo of Russian crude oil. Our refineries produce petrol and diesel as well as other products that people rely on every day. To be clear, without an uninterrupted supply of crude oil to refineries, the energy industry cannot assure continued provision of essential products to people across Europe over the weeks ahead. Cargoes from alternative sources would not have arrived in time to avoid disruptions to market supply.
We didn’t take this decision lightly and we understand the strength of feeling around it.
We will continue to choose alternatives to Russian oil wherever possible, but this cannot happen overnight because of how significant Russia is to global supply. We have been in intense talks with governments and continue to follow their guidance around this issue of security of supply, and are acutely aware we have to navigate this dilemma with the utmost care. We welcome any direction or insights from governments and policymakers as we try to keep Europe moving and in business.
We will commit profits from the limited amount of Russian oil we have to purchase to a dedicated fund. We will work with aid partners and humanitarian agencies over the coming days and weeks to determine where the monies from this fund are best placed to alleviate the terrible consequences that this war is having on the people of Ukraine.
Updated : March 4, 2020 20:00
Response on the purchase of Russian crude oil
We are appalled by the events in Ukraine and have already made clear our intention to exit joint ventures with Gazprom – which is majority-owned by the Russian government – and related entities, as well as intending to end our involvement with a significant project to pipe gas from Russia to Europe.
We have also stopped most activities involving Russian oil. However, we currently purchase it and other Russian products for some refineries and chemical plants to ensure that we continue the production of essential fuels and products that people and businesses rely on every day.
We will further reduce our use of Russian oil as alternative crudes become available to buy, but this is highly complex as Russian oil plays a significant role in global supply and in the current, tight market there is a relative lack of alternatives.
In compliance with current sanctions, we are working to continue to securely supply energy to our customers across Europe and other markets.
Updated : February 28, 2022 17:45
Shell intends to exit equity partnerships held with Gazprom entities
The Board of Shell plc (“Shell”) announced today its intention to exit equity partnerships held with Gazprom entities. CEO Ben van Beurden said: “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. 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.”