Friday, March 31, 2023
HomeEconomyShell stops buying oil from Russia and apologizes

Shell stops buying oil from Russia and apologizes


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Shell apologized on Tuesday for buying crude from Russia last week. The company said it would completely withdraw from any involvement in fossil fuels over the country’s invasion of Ukraine.

“We are fully aware that our decision last week to purchase a cargo of Russian crude was not correct and we regret it,” said Shell Chief Executive Ben van Beurden.

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Shell bought a shipment of Russian crude from Swiss trader Trafigura in the S&P Global Platts loading window from Baltic ports at a record low for Brent, at less than $28.50 a barrel, according to traders. said last Friday (4).

Last week, the company said it would exit all of its Russian operations, including Sakhalin 2 LNG, in which it holds a 27.5% stake, and which is 50% owned and operated by Russian gas group Gazprom.

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Shell has joined a string of companies that said it was relinquishing its 19.75% stake in Russian oil giant Rosneft.

But it was still one of the few Westerners to continue buying Russian crude since the conflict in Ukraine intensified.

The British energy company said it would change its supply chain to remove volumes from the sanctions-hit country as quickly as possible and close its fuel stations and aviation fuel and lubricant operations in the territory.

The company said the supply chain change could take weeks to complete and will decrease throughput at some of its refineries.

The withdrawal of Russian petroleum products, pipeline gas and LNG (liquefied natural gas) will be phased in.

The company also plans to end its involvement in the Nord Stream 2 Baltic pipeline, which links Russia to Germany, which it helped finance as part of a consortium.

Reuters reported on Monday that the United States was willing to move forward with a ban on Russian oil imports without the participation of allies in Europe in light of Russia’s invasion of Ukraine.

Oil prices have reached their highest levels since 2008 due to delays in the potential return of Iranian oil to global markets and because the United States and European allies are considering banning Russian imports.

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