Shell said on Tuesday that it intends to stop buying Russian crude oil and plans to exit the Russian energy industry entirely.
The energy giant says it plans to “phase out participation in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas (LNG) in accordance with new government guidance.”
In his press release, he added that, as an immediate first step, he would stop all spot purchases of Russian crude oil and close “its filling stations, aviation fuel and lubricants production in Russia.”
“We are well aware that our decision last week to purchase a batch of Russian crude oil for processing into products such as gasoline and diesel fuel, despite the fact that it was made with security of supply in mind, was the wrong one, and we are sorry,” — said Shell CEO Ben van Beurden.
“As we said, we will channel the profits from the limited remaining volumes of Russian oil that we will refine into a special fund. We will be working with aid partners and humanitarian agencies in the coming days and weeks to determine where the money from this fund is best suited to mitigate the dire consequences this war is having on the people of Ukraine.”
Van Beurden added that “today’s threats to halt pipeline flows to Europe once again illustrate the difficult choices and potential consequences we face when we try to do so.”
Last week, Shell said it would end its partnership with Russia’s state-owned energy giant Gazprom in light of Russia’s invasion of Ukraine.
The news comes a day after UK Prime Minister Boris Johnson said coordinated energy sanctions against Moscow, including a ban on Russian oil, were still “largely under discussion.”
Speaking at a press conference on Monday with his Dutch and Canadian counterparts in London, Johnson said cutting off Russian hydrocarbons was “the right thing to do.”
On Sunday, US Secretary of State Anthony Blinken told CNN’s Jake Tupper that the United States is “now in talks with our European allies and partners to find a coordinated way” to ban Russian oil.
Asked if Blinken was wrong in his remarks, Johnson replied, “No, I don’t think Tony Blinken was wrong.”
Countries need to think about how to phase out Russian hydrocarbons “as soon as possible,” Johnson added.
Johnson continued, “We’re going to work together to make sure we all have the replacements and materials we need.”