Shell has confirmed that it intends to exit its joint ventures with Russia-headquartered Gazprom and related entities.
This includes its 27.5 percent stake in the Sakhalin-II LNG facility, its 50 percent stake in the Salym petroleum development, as well as the Gydan energy venture. Shell also intends to end its involvement in the Nord Stream 2 pipeline project.
Shell’s chief executive officer, Ben van Beurden, said: “Our decision to exit is one we take with conviction. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia. In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions.”
Shell’s staff in Ukraine and other countries has been working together to manage the company’s response to the crisis locally. Shell will also work with aid partners and humanitarian agencies to help in the relief effort.
At the end of 2021, Shell had around USD3 billion in non-current assets in these ventures in Russia. The company expects that the decision to start the process of exiting joint ventures with Gazprom and related entities will impact the book value of Shell’s Russia assets and lead to impairments.