Shell stops oil purchases from Russia

Energy company Shell, which surprised the global public with its discounted oil purchases from Russia at a time when many global companies were participating in the sanctions measures against Russia, announced that it would stop its crude oil purchases from Russia.

Shell said it would gradually cease purchases of Russian hydrocarbon products, including crude oil, petroleum products, gas and LNG, under government rules.

Shell bought crude oil from Russia last week at a discount of $28.50 a barrel.

The company announced that it decided to withdraw from projects in the country on February 28, 2022, after Russia's attack on Ukraine.

In this context, it was stated that the company will sell its 27.5 percent stake in the Sakhalin-II LNG facility, 50 percent each in the Salym Petroleum Development and Gydan energy venture, and leave its joint ventures in Gazprom and related institutions.

As of the end of last year, Shell's current fixed assets in Russia stood at $3 billion, and this decision is expected to damage the value of Gazprom and other organizations.

After the economic sanctions announced by the USA and European countries against Russia, bp, Equinor and Shell withdrew from their investments in the country. French energy company TotalEnergies has announced that it will not transfer capital to new projects in Russia. Finally, the US energy company ExxonMobil stated that it will cease its operations in the Sakhalin-1 natural gas and oil production field in Russia and will not make any new investments in the country.