Shell to exit ALL joint ventures with Russia’s Gazprom over Ukraine invasion

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Opening of a Royal Dutch Shell petrol station in Kemerovo, Siberia, Russia, September 14, 2018. Royal Dutch Shell plans to double the number of its petrol stations in Russia to 450, says Sergey Starodubtsev, the director-general of Shell Neft, the company's Russian subsidiary. According to Starodubtsev, Russia is a 'priority region' for Shell, hence the drive to further increase the number of petrol stations to about 450. This means Russia now is the main growth region in Europe for Shell stations. There are more than 43,000 petrol stations in 80 countries under the Shell brand.

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 yesterday.

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.

“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.”