Shell to End Involvement with Nord Stream 2 Following Ukraine Invasion

(P&GJ) — Shell said on Monday it will exit all its Russian operations, including its involvement in the Nord Stream 2 pipeline from Russia to Germany, which it helped finance as a part of a consortium of companies.

Shell will also end its relationship with the flagship Sakhalin 2 LNG plant in which it holds a 27.5% stake, and which is 50% owned and operated by Russian gas giant Gazprom.

"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," Shell Chief Executive Ben van Beurden said in a written statement.

Shell said leaving the ventures in Russia will lead to financial impairments, since Shell had about $3 billion in non-current assets tied to such operations in Russia at the end of 2021.

The decision comes a day after rival bp abandoned its stake in Russian oil giant Rosneft in a move that could cost over $25 billion.

 

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