Shell Faces a $5 Billion Hit from the Russia Exit

Following Moscow’s invasion of Ukraine, Shell warned it would take a $5 billion (4.6 billion euro) hit on its exit from Russia.

Per the RFI report, Shell recently announced that its gradual withdrawal from Russia would result in impairments and additional charges of between $4 billion and $5 billion in the first quarter.

Shell announcements come after the London-listed energy major announced in late February that it would sell its stakes in all joint ventures with Russian state energy giant Gazprom.

In March, Shell revealed to the Public that it would withdraw from Russian gas and oil in line with UK government policy.

Meanwhile, on Thursday, Shell disclosed to continue fulfilling contracts on buying fuel from Russia that had been signed before the Ukraine war.

“Shell has not renewed longer-term contracts for Russian oil, and will only do so under explicit government direction, but we are legally obliged to take delivery of crude bought under contracts that were signed before the invasion,” the company said in the statement.

On the back of the conflict, prices soared to near-record levels last month, and the group said that the state of global oil markets remains volatile.

Since the United Kingdom is less dependent on Russian energy than the rest of Europe, the country plans to stop importing its oil by the end of the year and eventually its gas as well.

The Russian invasion of Ukraine on February 24 prompted many international companies to stop doing business in Russia.

Shell has taken steps to simplify tax and share arrangements by switching headquarters from the Netherlands to Britain.

Leave A Reply

Your email address will not be published.