Frequently asked questions

Shell no longer participates in any joint ventures with Gazprom and related entities with ongoing operations inside Russia:

• Sakhalin-2 - In September 2022, Shell formally advised the Russian Federal Government (RFG) that it would not apply for shares in a new entity established by executive order of the RFG to operate the Sakhalin-2 project. Shell does not hold shares in that entity and no longer has any involvement in the operations of the Sakhalin-2 project. Shell reserves all of its legal rights relating to its 27.5% (minus one share) interest in Sakhalin Energy Investment Company Ltd (SEIC), a Bermuda-based joint venture formed by Shell, Gazprom (50% plus one share), Mitsui (12.5%) and Mitsubishi (10%) to own and operate the Sakhalin-2 project before the RFG’s executive order came into effect.
• Salym Petroleum Development - In March 2023, Shell completed the withdrawal from its 50% interest in the Salym project in Western Siberia, which had been jointly developed with Gazprom Neft, a subsidiary of Gazprom. Shell’s share in the venture in Western Siberia was acquired by Gazprom Neft.
• Gydan - In May 2022, Shell’s share in the Gydan energy exploration venture was transferred to our joint venture partner, Gazprom Neft. Gydan had no production and was yet to make a commercial discovery.

Shell has exited all its downstream business (including services stations, fuels supply and lubricants) in Russia, having sold Shell Neft to PJSC LUKOIL in May 2022:

• Shell Neft’s retail network consisted of 240 sites owned by Shell Neft and 171 sites owned by third-party dealers. Shell Neft also owned and operated a lubricant blending plant and business.
• Shell Neft was a 100% Shell-owned subsidiary and was fully consolidated until the date of the disposal.

Shell’s role in Nord Stream 2 is limited to that of a lender – and we made our final loan instalment in Q2 2020. There is no further obligation to provide financing to the project:

• Shell announced at its Q1 2022 results that it had fully impaired the value of the loan made to NordStream-2 AG ($1,126 million pre-tax).
• We intend to continue to pursue our interest as creditor through moratorium and bankruptcy proceedings.

Shell holds a 27.5% (minus one share) interest in Sakhalin Energy Investment Company Ltd. (SEIC), a Bermuda-based joint venture formed by Shell, Gazprom (50% plus one share), Mitsui (12.5%) and Mitsubishi (10%) to own and operate the Sakhalin-2 project.

In June 2022, a Russian Presidential Decree was passed requiring the transfer of all licences, rights and obligations of SEIC into a newly-created Russian company. Shell understands that, following executive orders by the Russian President and Federal Government, from a Russian legal perspective all licences, assets, obligations and staff of SEIC were transferred to the new Russian company.

On September 1, 2022, Shell formally advised the Russian Federation that it would not apply for shares in the new company and that it objected to the purported transfers from SEIC to the company created by the Russian Federal Government to operate the Sakhalin-2 project. Shell does not hold shares in that company or have any ongoing involvement in the management or operations of the Sakhalin-2 project. We reserve all our legal rights relating to our 27.5% (minus one share) interest in SEIC.

Shell has a long-term LNG sale and purchase agreement (SPA) with SEIC. We understand that, following orders by the Russian President and the Federal Government, from a Russian legal perspective all licences, assets, obligations and staff of SEIC have been transferred to the new Russian company established to operate the Sakhalin-2 project. Shell is not receiving cargoes due under the SPA with SEIC. Shell has reserved its rights relating to this contract.

We are working to deliver LNG to our customers from our diverse and flexible global supply portfolio, including from our equity assets across the globe and offtake from other LNG supply projects.

Spot purchases are those made on a shorter-term basis, as opposed to longer-term supply contracts.

On March 8, 2022, Shell announced its intent to withdraw from involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and LNG in a phased manner, aligned with government guidance. Shell has followed the intent of this announcement in full compliance with sanctions, applicable laws and regulations of the countries in which it operates.

Shell has not made any new spot purchases of Russian crude since March 8, 2022.

Earlier in March 2022, we purchased 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 and being in full compliance with applicable laws, we quickly recognised that it was not the right decision and apologised. The profits from the crude oil bought on the spot market after the conflict started were donated to the Embassy of Ukraine in the UK for their WithUkraine humanitarian aid programme ($30 million), while another $30 million was donated to the UN World Food Programme to support the people impacted by the conflict in Ukraine.

Shell has not – and will not – renew longer-term contracts for Russian oil, unless under specific government direction to do so. We stopped all liftings and purchases of Russian crude before the end of 2022, in full compliance with sanctions.

We have stopped purchases of cargoes of refined products exported from Russia. Under continued guidance from governments we are also seeking to avoid any fuels that may contain products refined in Russia, by using a range of controls that can include no Russian-origin product contract clauses with suppliers, certificate of origin checks and product flow tracking.

Aligned with government guidance and in full compliance with sanctions, other refinery-operating companies in third countries may continue to import Russian crude in order to transform it into a range of products that various communities need. Also in full compliance with sanctions and aligned with government guidance, Shell does not currently exclude purchasing products that have been refined from Russian crude by third parties in such countries.

Increased imports of LNG are one way Europe has replaced the piped natural gas from Russia it relied on for decades. The supply of natural gas continues to be a complex challenge requiring concerted action between governments and energy suppliers.

Shell has stopped spot purchases of Russian LNG but still has one remaining long-term contractual commitment in operation.

We have not used any Russian-owned or managed vessels since June 2022.

Aligned with government guidance and in full compliance with sanctions, applicable laws and regulations, we continue to work with governments, partners and customers to manage the impacts of Russian aggression on the energy security of key markets.

For example, while some accessible geographies and energy infrastructure assets enable alternative supplies to customers in much of Europe, diversifying the supply of energy in some landlocked parts of Central and Eastern Europe is more challenging. Under European Union sanctions exemptions, some refineries in these countries have been permitted to receive Russian oil by pipeline, so they can make fuel for local consumers.

To supply our customers in those countries, and in line with the direction set by relevant governments, we will need to buy products from a small number of local refineries where logistics mean our operations would not otherwise be feasible. We will continue to act in full compliance with all applicable laws and sanctions.

Updated 19 April 2023

By the start of 2023, the overall amount of our humanitarian donations for the Ukraine war had reached $74 million. Our focus has been to support the people of Ukraine by working with aid organisations in Ukraine and in bordering countries, where refugees have headed in their millions.

As part of our initial efforts in Ukraine and Poland after the invasion, we pledged nearly $11 million to several humanitarian and aid organisations, including $2 million to the Ukrainian Red Cross, $2 million to Polish Humanitarian Action and $1 million to the Polish Fire Department to send equipment and medical supplies to their colleagues in Ukraine. Around $3 million was also pledged to a number of smaller organisations working locally to help them provide vital aid. We worked with various partners in other neighbouring countries to identify the most urgent needs on the ground.

Shell also contributed $3 million as humanitarian aid to our global disaster relief partner, Mercy Corps, to help meet the immediate needs of those affected by the war in Ukraine. In addition, Shell has matched employee donations to Mercy Corps.

In March 2022, we purchased 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 and being in full compliance with applicable laws, we quickly recognised that it was not the right decision and apologised. The profits from the crude oil bought on the spot market after the conflict started were donated to the Embassy of Ukraine in the UK for their WithUkraine humanitarian aid programme ($30 million), while another $30 million was donated to the UN World Food Programme to support the people impacted by the conflict in Ukraine.