Shell abandons Russian oil and gas

Shell PLC said it is withdrawing from dealing in Russian oil and natural gas, saying it would immediately halt all spot purchase of crude from the country and will phase out its other trading and business dealings.

While Russian crude and gas has been exempt so far from Western sanctions, oil soared above $139 a barrel on Monday to its highest since July 2008 as the United States and European allies began to consider banning Russian oil imports.

U.S. lawmakers have called for bans but President Joe Biden’s administration has only sanctioned Russian oil tankers. Britain and Canada have also barred Russian vessels from landing at their ports in protest at Moscow’s invasion of Ukraine.

Shell apologised on Tuesday for buying Russian oil last week after it had said it would pull out of its Russian operations, including the Sakhalin 2 LNG plant in which it holds a 27.5% stake and which is operated by Gazprom.

Source: Reuters