Frequently asked questions

Shell will not participate in the new entity established by executive order of the Russian Federal Government to operate the Sakhalin-II liquefied natural gas (LNG) facility.

We have notified the Russian Federal Government and our partners in Sakhalin Energy Investment Company Ltd (SEIC) that we will not take equity in the new LLC and that we reserve all our legal rights. 

Shell has a contract to lift LNG from SEIC. We continue to monitor developments relating to that contract and assess our options in line with applicable legal requirements and agreements. 

Our diverse and flexible global supply portfolio enables us to deliver LNG from multiple sources. It includes LNG supply from our equity assets across the globe and offtake from different LNG supply projects. Our non-participation in the new Sakhalin entity established by the Russian Federal Government will not impact our ability to continue to serve customers, in line with our commitments.

We continue to work on withdrawing from SPD, in line with applicable legal requirements and agreements. We are monitoring the situation and assessing our legal options with respect to our share in SPD. Shell has suspended crude lifting from SPD.

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

Our focus has been to support the people of Ukraine by working with aid organisations in Ukraine itself and its bordering countries, where refugees are heading in their millions.

As part of our efforts in Ukraine and Poland, we have 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 $3million has also been pledged to a number of smaller organisations working locally to provide vital aid activities. We are working with various partners in other Neighbouring countries, to identify the most urgent needs on the ground.

Shell is also contributing $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 committed to match employee donations to Mercy Corps.

The current 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. But ultimately, it is for governments to decide on the incredibly difficult trade-offs that must be made during the war in Ukraine. We will continue to work with them to help manage the potential impacts on the security of energy supplies, particularly in Europe. 

Our decision 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. The profits from the crude oil bought on the spot market after the conflict started will go to help alleviate the terrible consequences that this war is having on the people impacted by the war in Ukraine. As a result, $30 million has been donated to the Embassy of Ukraine in the UK for their WithUkraine humanitarian aid programme, while another $30 million has been donated to the UN World Food Programme to support the people impacted by the conflict in Ukraine.

On March 8, Shell announced its intention to withdraw from Russian oil and gas, aligned with new government guidance. Read the full statement.

On March 8, in response to the appalling war in Ukraine, Shell announced its phased withdrawal from all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas (LNG).

Because of how much the global market relies on Russian energy exports, it will take time for the company to phase out Russian hydrocarbons completely, without jeopardising the supply of fuels that are needed by communities around the world.

But we made this decision with conviction. Below are some examples of how we are tackling these challenges as part of our phased withdrawal.

All activities detailed below will be carried out in full compliance with sanctions, applicable laws and regulations of the countries in which we operate.

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

Shell has not made any new spot purchases of Russian crude since the March 8 announcement. Those that were purchased before that date have been delivered and we will not be taking delivery of more spot crude cargoes.

The profits from the crude oil bought on the spot market after the conflict started will go to help alleviate the terrible consequences that this war is having on the people impacted by the war in Ukraine. As a result, $30 million has been donated to the Embassy of Ukraine in the UK for their WithUkraine humanitarian aid programme, while another $30 million has been 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. In full compliance with sanctions, we will stop all liftings of Russian crude by the end of 2022. 

When we announced our intent to withdraw from Russian hydrocarbons, we knew that phasing out Russian products, such as diesel, fuel oil and naphtha (an important feedstock for the petrochemicals sector) from global supply chains would be particularly complex.

We have stopped spot purchases of cargos of refined products directly exported from Russia and by the end of 2022 all Shell long-term contracts to purchase refined products exported from Russia will end.

We are looking for options to reduce these term volumes more quickly. And we are working with governments, suppliers and customers to remove such products from supply chains in a way that allows continuity of supply.

We are working to secure alternatives wherever possible, but there is a finite supply.

As Europe seeks to reduce reliance on Russian oil and gas, some products processed in European refineries will continue to contain Russian oil. At the same time, many products like diesel are typically blended – meaning a proportion of the liquids mixed into the pipes and tanks that feed the entire industry will have originated in Russia.

Blending in the supply chain may have been done by other companies, a long-standing industry practice. Or it could have happened when the fuel cargos were stored in huge tanks which usually contain a mix of fuels from several countries.

Shell has eliminated the vast majority of spot purchases of refined products that may contain a proportion of Russian fuel that was blended in further up the supply chain.

And, since announcing its plan to withdraw from Russian hydrocarbons on March 8, Shell has not bought any products exported from Russia for blending so they can then be sold on as ‘non-Russian’.

Reducing European reliance on piped natural gas supplies from Russia is also a very complex challenge that requires concerted action by governments, as well as energy suppliers and customers.

Increased imports of LNG are one way in which Europe could reduce its reliance on Russian gas. Russia is also a significant supplier of LNG on the global market. Shell has stopped spot purchases of Russian LNG but still has long-term contractual commitments. We are working through the detailed implications of our March 8 announcement.

We are avoiding any new agreements involving the use of Russian vessels. And, where we currently have Russia-linked vessels working under contract, we will discontinue their use as soon as possible. 

Since early March, we have cut the number of Russian-owned or managed vessels on Shell charter from around 40 to zero.