Business

Shell buys Russian oil after limiting its business with the country

Shell buys Russian oil after limiting its business with the country

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  • Shell announced on Saturday that it has bought Russian oil to avoid market disruptions and ensure security of supply.
  • Shell had previously announced that it would limit its activities with Russia, in particular by divesting from Gazprom, a Russian-majority energy company.
  • “We will continue to choose alternatives to Russian oil wherever possible, but this cannot happen overnight due to Russia’s importance in global supply,” Shell said.

Shell said it had bought a shipment of Russian crude oil, just days after the oil giant said it would limit its business with the country in response to its “senseless act of military aggression” against Ukraine.

In one statement shared on Twitter On Saturday, Shell said it had made the “difficult decision” to buy the oil from Russia – the world’s third-largest oil producer and a major gas exporter to Europe – citing concerns about market disruptions and the safety of supply.

“We will continue to choose alternatives to Russian oil wherever possible, but this cannot happen overnight due to Russia’s importance in global supply,” Shell wrote in the statement. “We have had intense discussions with governments and continue to take their advice on this issue of security of supply, and are acutely aware that we must navigate this dilemma with the utmost care.”

The purchase follows Shell’s announcement earlier this week that it would divest Gazprom, a Russian-majority energy company, and its related businesses. Shell also announced its intention to pull out of the Nord Steam 2 pipeline project, a venture designed to transport gas between Russia and the rest of Europe.

The pledges came after rivals BP and ExxonMobil said they were cutting ties with the country, with the former shedding its 20% stake in Russian oil giant Rosneft and the latter quitting its Russian oil and gas operations altogether. valued at $4 billion.

Shell said in its statement on Saturday that while it “does not take this decision lightly”, the purchase was necessary to meet oil demand across Europe.

“To be clear, without an uninterrupted supply of crude oil to refineries, the energy industry cannot ensure the continued supply of essential products to people across Europe over the coming weeks,” Shell wrote. in the press release. “Cargoes from alternative sources would not have arrived in time to avoid market supply disruptions.”

The oil giant added that it “will commit the profits of the limited amount of Russian oil we have to buy into a dedicated fund”, but did not specify which fund specifically.

“We will be working with humanitarian partners and aid agencies over the coming days and weeks to determine where funds from this fund are best placed to mitigate the dire impact this war is having on the people of Ukraine,” Shell wrote in its statement. communicated.