Due to the invasion of Ukraine, Shell has announced that it will stop importing Russian oil and natural gas and close its service stations, aviation fuels, and other operations in the country.
In a statement, the company said it would “phase out” all Russian hydrocarbons, including crude oil, petroleum products, natural gas, and liquefied natural gas.
“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 security of supplies at the forefront of our thinking — was not the right one and we are sorry,” CEO Ben van Beurden said.
On Friday, Ukrainian Foreign Minister Dmytro Kuleba said that Shell “disregardfully” purchased the oil and called on the public to pressure the company and other international firms to stop such activity.
“One question to Shell: doesn’t Russian oil smell (like) Ukrainian blood for you?” Kuleba said on Twitter. “I call on all conscious people around the globe to demand multinational companies to cut all business ties with Russia.”
Shell said last week that it was “shocked by the loss of life in Ukraine“ and it is ending its joint ventures with Gazprom, the Russian government-controlled oil and gas company.
According to the International Energy Agency, Russia is the world‘s second-largest oil exporter, accounting for more than 12% of global output.
To restrict funding for President Vladimir Putin’s military exploits, Ukraine and its supporters have called on the rest of the world to stop importing Russian oil. But this move is sure to affect consumers.
Last month, Oil was trading for around $90 a barrel. As consumers reject Russian crude, prices climb beyond $120 a barrel, with many refiners dreading future sanctions. They are concerned that if sanctions are enforced soon, they will be left with oil that cannot be resold as gasoline.
“These societal challenges highlight the dilemma between putting pressure on the Russian government over its atrocities in Ukraine and ensuring stable, secure energy supplies across Europe,” van Beurden said.
He said Shell would work with governments “to help manage the potential impacts on the security of energy supplies, particularly in Europe.″
Discover more from Baller Alert
Subscribe to get the latest posts sent to your email.
