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Fuel giant Shell withdraws from Russia

Shell will reportedly withdraw from its participation in all Russian hydrocarbons, including crude oil, petroleum products, natural gas and liquefied natural gas (LNG).

In a written statement from Shell, it was stated that as a first step, the company will stop all spot purchases of Russian crude oil and will also close its service stations, aviation fuels and lubricants operations in Russia. Shell Chief Executive (CEO) Ben van Beurden, whose views were included in the statement, noted that threats to stop the flow of energy to Europe show more clearly the difficult choices faced and the possible consequences.

Emphasizing that they want to clearly demonstrate the position of the company after this week’s government statements, Van Beurden listed the steps to be taken by governments unless otherwise directed:

“WE WILL START WITHDRAWAL FROM RUSSIAN OIL PRODUCTS, PIPELINE GAS AND LNG”

“We will immediately stop buying Russian crude from the spot market and will not renew forward contracts. At the same time, in close consultation with governments, we will change the crude oil supply chain to stop Russian purchases. We will do this as fast as we can, but the physical location and availability of alternatives means this could take weeks to complete and will result in reduced yields at some of our refineries. We will close our service stations, aviation fuels and lubricants operations in Russia. We will handle this very carefully to do it in the safest way but the process will begin right away. We will begin to phase out Russian oil products, pipeline gas and LNG. This is a complex challenge. Changing this part of the energy system will require joint action from governments, energy suppliers and customers, and the transition to other energy sources will take much longer.”

Source: Sabah / Translated by Irem Yildiz

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