Shell suspends purchase of Russian crude oil amid backlash
British oil supermajor Shell has announced its intention to withdraw from its involvement in all Russian hydrocarbons, including crude oil, gas and LNG. The company will immediately stop all spot purchases of Russian crude oil.
PHOTO: Aerial view of Shell's Pernis refinery in the Netherlands. Shell
Shell will also shut down its service stations, aviation fuels and lubricants operations in Russia.
Last week, Shell faced backlash over its decision to buy heavily discounted Russian crude oil even as the Russian invasion intensified. On Monday, the company was forced to issue justification, “that the shift cannot happen overnight and that alternative crude cargoes would not have arrived in time to feed refineries.”
Shell plans to reduce its dependence on Russian hydrocarbons in planned phases.
“We will do this as fast as possible, but the physical location and availability of alternatives means could take weeks to complete and will affect production at some of our refineries,” it said in a statement.
“We are acutely aware that our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel despite being made with the security of supplies at the forefront of our thinking was not the right one and we are sorry,” Shell’s chief executive Ben van Beurden added.
Last week, Shell announced its plans to exit its joint venture with Russian state-owned oil company Gazprom amid mounting pressure to sever ties with Russian entities.
