Shell is to quit all its partnerships with Kremlin-backed Gazprom in the wake of Russia’s invasion of Ukraine.
Chief executive Ben van Beurden said he was “shocked by the loss of life in Ukraine" adding that the company "cannot and will not stand by".
Shell will exit its joint ventures with Gazprom and related entities, including its 27.5% stake in the Sakhalin-II liquefied natural gas facility, its 50% in the Salym Petroleum Development and the Gydan energy venture.
The energy giant said it also intends to end its involvement in the Nord Stream 2 pipeline project.
Relief effort
“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,” Mr van Beurden said.
Shell’s staff in Ukraine and other countries has been working together to manage the company’s response to the crisis locally. Shell will also work with aid partners and humanitarian agencies to help in the relief effort.
“Our decision to exit is one we take with conviction,” said Mr van Beurden.
“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.”
'Right call'
Kwasi Kwarteng, the UK Business Secretary who met Mr van Beurden on Monday to discuss the company’s involvement in Russia, welcomed the decision.
“Shell has made the right call to divest from Russia — including Sakhalin II,” Kwarteng said in a tweet.
“There is now a strong moral imperative on British companies to isolate Russia. This invasion must be a strategic failure for Putin.”
Gazprom declined to comment.
The move comes 24-hours after bp confirmed it would exit its 19.75% shareholding in Russian-state owned Rosneft, stating it "no longer aligned with bp’s business and strategy".
Bernard Looney and Bob Dudley - bp's present and past ceo - also resigned firm the board of Rosneft with immediate effect.