LONDON: Shell SHEL.L will exit all its Russian operations, including a major liquefied natural gas plant, it said on Monday, becoming the latest major Western energy company to quit the oil-rich country following Moscow's invasion of Ukraine.
The decision comes a day after rival BP BP.L abandoned its stake in Russian oil giant Rosneft ROSN.MM in a move that could cost the British company over $25 billion. Norway's Equinor EQNR.OL also plans to exit Russia.Read full story
Shell said in a statement it will quit the flagship Sakhalin 2 LNG plant in which it holds a 27.5% stake, and which is 50% owned and operated by Russian gas giant Gazprom GAZP.MM.
Shell said the decision to exit Russian joint ventures will lead to impairments. Shell had around $3 billion in non-current assets in these ventures in Russia at the end of 2021, it 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," Shell Chief Executive Ben van Beurden said in a statement.
Rival BP's Chief Executive Bernard Looney called an urgent meeting with his leadership team on Thursday, just hours after the first Russian bombs fell on Ukrainian capital Kyiv last week, two BP sources told Reuters. Russia calls its actions in Ukraine a "special operation".
During that previously unreported meeting, Looney made it clear the company's investment in Rosneft had become untenable, the sources said.
"There was only one decision we could make," one of the BP insiders said. "The exit was the only viable way."
Looney held two more board meetings at the weekend, after which board members voted to immediately exit the Rosneft stake, the sources said.
Looney also spoke to British Business Secretary Kwasi Kwarteng on Friday, when Kwarteng expressed his concern about BP's interests in Russia. Kwarteng welcomed BP's decision to exit on Twitter on Sunday.
SHELL
Kwarteng had a similar message for Shell on Monday.
"Shell have made the right call to divest from Russia," he said on Twitter, adding that he had spoken to van Beurden earlier on Monday.
The Sakhalin 2 project, located off Russia's northeastern coast is huge, producing around 11.5 million tonnes of LNG per year, which is exported to major markets including China and Japan.
For Shell, the world's largest LNG trader, leaving the project deals a blow to its plans to supply gas to fast-growing markets in the coming decades.
Shell said the Russia exit will not affect its plans to switch to low-carbon and renewables energy.
The company also plans to end its involvement in the Nord Stream 2 Baltic gas pipeline linking Russia to Germany, which it helped finance as a part of a consortium of companies. Germany last week halted the project. Read full story
Shell will also exit the Salym Petroleum Development, another joint venture with Gazprom.
Together, Salym and Sakhalin 2 contributed $700 million to Shell's net earnings in 2021.
"Right decision by the Board of Shell to exit its Russian ventures," Adam Matthews, chief responsible investment officer for the Church of England Pensions Board, which invests in Shell, said in a LinkedIn post.
"Following BP's decision the focus is on those that have yet to take such a step," Matthews said.
Japanese trading houses Mitsui & Co 8031.T and Mitsubishi Corp 8058.T, which own stakes of 12.5% and 10% in Sakhalin 2 respectively, said separately that they are examining Shell's announcement. They said they would consider the situation with the Japanese government and partners for the project, without giving any further details.
Norway's Equinor, majority owned by the Norwegian state, said earlier on Monday that it would start divesting from its joint ventures in Russia. That came after the country's sovereign wealth fund, the world's largest, said on Sunday it would divest its Russian assets.
Other Western companies including global bank HSBC and the world's biggest aircraft leasing firm AerCap said they plan to exit Russia as Western governments ratchet up economic sanctions on Moscow.
READ MORE: Russia-Ukraine crisis: What led to the attacks and the latest developments
Reuters
Tue Mar 01 2022
Shell will exit all its Russian operations, including a major liquefied natural gas plant. - Wikipedia photo
Tiada kompromi isu tuntutan 40 peratus hasil negeri
Kerajaan negeri menegaskan untuk tidak akan berkompromi terhadap isu tuntutan 40 peratus hasil yang dikutip Kerajaan Persekutuan di negeri ini, seperti terkandung dalam Perkara 112C dan 112D Perlembagaan Persekutuan.
Pengasingan kuasa AG, Pendakwa Raya harap selesai tahun ini
Semua pihak mempunyai hak untuk mendapatkan pengadilan di mahkamah.
Keuntungan bersih Maxis meningkat kepada RM353 juta pada suku pertama 2024
Keuntungan bersih Maxis Bhd meningkat kepada RM353 juta bagi suku pertama berakhir 31 Mac 2024.
Tak perlu lagi redah perjalanan lebih sejam ke klinik
Penduduk Kampung Togop Darat 1 di Ranau, Sabah sebelum ini terpaksa membuat perjalanan lebih satu jam untuk ke pekan terdekat bagi mendapatkan perkhidmatan kesihatan.
Saya sebut nama Deepak kerana ada gambar - Mohamed Azmin
Mohamed Azmin memberitahu Mahkamah Tinggi hari ini beliau menyebut nama Deepak dalam ucapannya tahun lepas kerana terdapat foto ahli perniagaan itu bersama-sama seorang menteri dalam pesawat.
Serangan Balai Polis Ulu Tiram: Saya ingat orang buat cerita - Bapa
Pada awalnya Ahmad Said Md Piah, 65, menyangka berita mengenai
Ekonomi Malaysia berada di landasan untuk berkembang 4.0 hingga 5.0 peratus tahun ini - BNM
Bank Negara Malaysia (BNM) kekal mengunjurkan ekonomi Malaysia berkembang 4.0 hingga 5.0 peratus tahun ini.
Badminton Terbuka Thailand: Zii Jia mara ke separuh akhir
Lee Zii Jia berada di landasan tepat bagi mengejar misi memburu gelaran kedua Terbuka Thailand apabila berjaya melangkah ke separuh akhir.
Serangan Balai Polis Ulu Tiram: Hasrat Ami bawa keluarga bercuti tidak kesampaian - Kakak
Kakak kepada Allahyarham berkongsi adiknya itu sering meluahkan hasrat berkenaan ketika membuat panggilan video bersama keluarga.
Ahli Parlimen, ADUN Bersatu diberi tempoh 14 hari nyata pendirian - Hamzah
Semua wakil rakyat Bersatu termasuk enam Ahli Parlimen dan ADUN yang berpaling tadah dengan menyatakan sokongan kepada Kerajaan Perpaduan diberi tempoh 14 hari untuk menyatakan pendirian mereka.
Tentera Ukraine tembak jatuh pesawat pejuang Rusia
Zelenskyy berkata Moscow tidak mempunyai keinginan untuk berdamai dan mereka hanya boleh dipaksa meninggalkan Ukraine.
Pemimpin China, Jerman bincang krisis Ukraine
Presiden China, Xi Jinping bertemu dengan Canselor Jerman, Olaf Scholz di Wisma Tetamu Diaoyutai Beijing.
Euro 2024: Ukraine sah layak selepas hambat Iceland
Pemain Chelsea, Mykhailo Mudryk adalah wira perlawanan untuk Ukraine.
'Jangan pilih kasih perang di Gaza dan Ukraine' - PBB
Guterres menggesa gencatan senjata di Gaza selain perang di Ukraine mengikut undang-undang antarabangsa dan kemanusiaan.
Ramai rakyat Rusia masih setia kepada Putin
Di sebalik perang di Ukraine, Presiden Russia, Vladimir Putin dijangka kekal mentadbir buat penggal kelima di republik itu.
Ukraine sasar hubungan dagang lebih kukuh dengan Malaysia
Terdapat potensi besar kerjasama kedua-dua pihak terutama dalam industri pertanian dan agromakanan, AI dan teknologi sistem keselamatan.
Berita antarabangsa pilihan sepanjang hari ini
Antara pelbagai berita luar negara yang disiarkan di Astro AWANI, berikut adalah yang paling menjadi tumpuan sepanjang hari ini.
Ukraine sambut Krismas pada 25 Disember buat pertama kali
Ia dilihat sebagai penghinaan kepada Rusia dan Gereja Ortodoks Rusia yang mengikuti kalendar Julian era Rom untuk majlis keagamaan.
Thailand hantar bantuan bernilai 2 juta baht untuk Ukraine yang dilanda perang
Palang Merah Thailand memperuntukkan siri keempat bantuan kemanusiaan kepada Palang Merah Ukraine bagi memperoleh barangan perlu untuk penduduk.
Ukraine akan hasilkan satu juta dron tahun depan
Angkatan pertahanan Ukraine memerlukan sekitar 100,000 hingga 120,000 dron setiap bulan dalam usaha menangkis serangan Rusia.