Shell pledges to stop buying Russian oil and gas

SHARE NOW

(NEW YORK) — Energy giant Shell announced on Tuesday plans to withdraw from its involvement in all Russian hydrocarbons, including crude oil and natural gas, amid Russia’s unprovoked invasion of neighboring Ukraine.

“As an immediate first step, the company will stop all spot purchases of Russian crude oil. It will also shut its service stations, aviation fuels and lubricants operations in Russia,” Shell said in a statement.

Shell will immediately stop buying Russian crude oil on the spot market and not renew term contracts. The company will also change its crude oil supply chain to remove Russian volumes, but said “this could take weeks to complete and will lead to reduced throughput at some of our refineries.”

In addition, Shell will shut its service stations, aviation fuels and lubricants operations in Russia, and will start a phased withdrawal from Russian petroleum products, pipeline gas and liquefied natural gas.

The company apologized for buying Russian oil last week.

“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,” Shell CEO Ben van Beurden said in a statement. “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.”

Copyright © 2022, ABC Audio. All rights reserved.