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Shell PLC said Tuesday that it intends to withdraw from Russian oil and gas in a phased manner in response to the Russian invasion of Ukraine, including immediately halting all spot purchases of Russian crude.
The energy major
SHEL,
SHEL,
said it will also shut its service stations, aviation fuels and lubricants operations in Russia, and that it won’t renew any Russian term contracts.
At the same time, it will change its crude oil supply chain to remove Russian volumes as quickly as possible, though it cautioned that the physical location and availability of alternatives mean it could take weeks to complete and will lead to reduced throughput at some of its refineries.
Shell said it would start its phased withdrawal from Russian products, but said it was a complex challenge and that changing this part of the energy system would require a concerted action by governments, energy suppliers and customers.
The company also apologized for purchasing 100,000 metric tons of Russia’s Urals crude oil on Friday. It had purchased the oil for $28.50 a barrel less than benchmark crude prices, the Wall Street Journal reported then. It said it would commit profits from Russian oil purchases to humanitarian funds to alleviate the crisis in Ukraine.
Write to Joe Hoppe at joseph.hoppe@wsj.com
