Shell To Stop Buying Russian Oil And Gas
Shell PLC (LON:SHEL) announced it would cease oil and gas purchases from Russia, as the company is set to cut ties with the country's energy sector. Shell will also close...
Shell PLC (LON:SHEL) announced it would cease oil and gas purchases from Russia, as the company is set to cut ties with the country's energy sector. Shell will also close all its service stations and halt all investments in the Eurasian giant.
As reported by CNN Business, British energy colossus Shell is poised to drop all fossils fuels trade with Russia as the country is facing slashing economic sanctions from all fronts. The decision was "aligned with new government guidance," the firm said.
Several energy companies have fled the country over the war with Ukraine, including BP plc (NYSE:BP), Equinor ASA (NYSE:EQNR), and France's TotalEnergies SE (EPA:TTE).
Shell CEO Ben Van Beurden said in a statement: "Our actions to date have been guided by continuous discussions with governments about the need to disentangle society from Russian energy flows, while maintaining energy supplies."
"Threats today to stop pipeline flows to Europe further illustrate the difficult choices and potential consequences we face as we try to do this," he added.
A ban on Russian imports could mean a deficit of 5 million barrels per day, and Russia has gone to warn about a steep oil price increase to $300 per barrel.
Shell is following governments' guidance and has decided not only to stop buying crude oil from Russia but also reset its supply chain to cut out Russian crude altogether, as CNN Business informs.
In a statement, Shell said: "We will do this as fast as possible, but the physical location and availability of alternatives mean this could take weeks to complete and will lead to reduced throughput at some of our refineries."
A wave of similar decisions by other big players could mean a dilemma between cornering Russia via an oil imports ban —and the cessation of operations in the country— and guaranteeing Europe energy supplies.
"But ultimately, it is for governments to decide on the incredibly difficult tradeoffs that must be made during the war in Ukraine. We will continue to work with them to help manage the potential impacts on the security of energy supplies, particularly in Europe," he said.
Entrepreneur Editors' Picks
Tory Burch Built a Brand Around Empowering Women. Now Her Foundation Is Furthering Her Mission: 'How Do We as a Company Have a Positive Impact on Humanity?'
This Founder Had to Play College Basketball in Men's Shorts and Shoes, So She Launched an Athletic Clothing Company Named After the Now 50-Year-Old Title IX Act
Is Beyoncé's 'Break My Soul' the Theme Song of the Great Resignation?
You're Probably Falling for All of Amazon Prime Day's Psychological Sales Tactics. A Marketing Professor Reveals Them — and How You Can Actually Get the Best Deal.
Comedian Paul Virzi: 'If You're Not Authentic, You Have Nothing'
Struggling to Come Up With Creative Ideas? Try Doing This.
Picking a Winning Emerging Brand Is How You Get Rich in Franchising. Here's How to Spot One.