Shell said on Tuesday it intends to stop purchasing Russian crude oil and plans to completely withdraw from the Russian energy industry.
The energy giant says it plans “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.”
It added in a press release that as an immediate first step it will stop all spot purchases of Russian crude oil and will shut “its service stations, aviation fuels and lubricants operations in Russia.”
“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,” said Shell Chief Executive Officer Ben van Beurden.
“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 Ukraine.”
Van Beurden added that “threats today to stop pipeline flows to Europe further illustrate the difficult choices and potential consequences we face as we try to do this.”
Shell last week said it will exit its equity partnerships with Russian state energy giant Gazprom in light of Russia’s invasion of Ukraine.
The news comes a day after British Prime Minister Boris Johnson said coordinated energy sanctions against Moscow, including a ban on Russian oil, are still “very much on the table.”
Speaking during a Monday news conference alongside his Dutch and Canadian counterparts in London, Johnson said it was the “right thing” to move away from Russian hydrocarbons.
On Sunday, US Secretary of State Antony Blinken told CNN’s Jake Tapper that the United States is “now talking to our European allies and partners to look at a coordinated way” to ban Russian oil.
Responding to a question as to whether Blinken was wrong in his remarks, Johnson replied, “No, I don’t think Tony Blinken was wrong.”
Countries need to consider how to move away from Russian hydrocarbons “as fast as possible,” Johnson added.
Johnson continued, “We’re going to work together on making sure that we all have the substitutes and the supplies that we need.”
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