TheCable

Shell Plc says it will exit joint ventures with Gazprom and related entities, including stakes in three major gas projects and the undersea Nord Stream 2 project, worth $3 billion.

The decision is coming as the Russian invasion of Ukraine entered Day 5 with no signs of relentless. 

The company announced its intention in a statement issued on Monday.

The statement added that the assets include its 27.5 percent stake in the flagship Sakhalin 2 liquefied natural gas (LNG) facility, 50 percent stake in the Salym Petroleum Development and the Gydan energy venture. 

Ben van Beurden, Shell’s CEO, said: “We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security”.

“Our decision to exit is one we take with conviction.

“We cannot — and we will not — stand by. 

“Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia. 

“In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions.

“At the end of 2021, Shell had around $3 billion in non-current assets in these ventures in Russia. 

“We expect that the decision to start the process of exiting joint ventures with Gazprom and related entities will impact the book value of Shell’s Russia assets and lead to impairments.”

On Sunday, BP also announced plans to offload its 19.75% stake in Russian state-owned oil firm Rosneft over the Ukraine invasion.