Shell announced on Monday that it will exit all of its Russian operations, including a major liquefied natural gas plant, becoming the latest major Western energy company to leave the oil-rich country after the invasion of Ukraine by Moscow.
The company said in a statement that it would divest its main LNG business, Sakhalin 2, in which it holds a 27.5% stake, and which is 50% owned and operated by Russian gas giant Gazprom. The business, located on Russia’s northeast coast, produces around 11.5 million tonnes of LNG a year, which is exported to key markets including China and Japan.
The decision comes a day after rival BP relinquished its 19.75% stake in Russian oil giant Rosneft, which accounts for about half of its oil and gas reserves, in a move that could cost the British company more than US$1. $25 billion (R$128.5 billion).
As a result of the stake, BP received income from Rosneft in the form of dividends totaling about US$640 million in 2021, about 3% of the company’s cash flow from operations.
“I was deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to all those affected. This has led us to fundamentally rethink BP’s position on Rosneft,” BP Chief Executive Bernard Looney said after the announcement of the withdrawal.
BP said the news would not affect its short-term and long-term financial goals, which include a strategy of moving away from oil and gas to low-carbon fuels and renewable energy. Norway’s Equinor also plans to exit Russia.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
