Shell becomes the latest company to withdraw all of its joint ventures with Russian-backed Gazprom just a day after rival BP said it would give up a 19.75% stake as a result of invasion of Ukraine.
Titan Petroleum has announced that it will terminate its joint ventures with Gazprom and related companies and leave the Sakhalin Liquefied Natural Gas (LNG) plant, selling its 27.5% stake.
Shell also said it would leave its 50 percent stake in Salym Petroleum Development and energy company Gydan, owned and operated by Russian gas giant Gazprom.
Sakhalin II, located off Russia’s northeast coast, is one of the world’s largest integrated, export-oriented oil and gas projects, as well as Russia’s first offshore gas project, producing about 11.5 million tonnes of LNG a year.
Shell, whose Russian assets were valued at $ 3 billion late last year, also said it would stop working on the controversial Nord Stream 2 pipeline project, which was completed last September.
The oil giant has reportedly invested about 750 million pounds in the 750-mile pipeline – designed to double the amount of natural gas passing through the Baltic Sea pipeline from Russia to Germany.
However, after Russia’s invasion of Ukraine, Germany said it was suspending final certification of the pipeline by regulators in further sanctions against the country.
The announcement was made today after important talks between Shell CEO Ben van Beurden and Business Secretary Quasi Quarteng.
Shell becomes the latest company to withdraw all of its joint ventures with Russian-backed Gazprom just a day after rival BP said it would give up a 19.75% stake as a result of the invasion of Ukraine (file image)
The move comes just a day after rival oil giant BP relinquished a stake in Russian energy giant Rosneft following a conflict sparked by the president. Vladimir Putinthe invasion of Ukraine.
It was announced that after this move, shares of BP fell by more than 4% today, as they face a blow of $ 25 billion.
The oil company saw that a large part was erased from its value after the announcement of abandonment of 19.75% stake as a result of the invasion of Ukraine.
The penalty came after the FTSE 100 fell 1% at the start of trading as markets absorbed a huge package of sanctions imposed by the West.
However, the downturns seemed relatively slight compared to the chaos in Russia, as the ruble fell to record lows and the central bank was forced to raise interest rates to 20 percent.
Shell CEO Ben van Beurden said in a statement: “We are shocked by the loss of life in Ukraine, which we regret as a result of a senseless act of military aggression that threatens European security.”
He added: “Our decision to leave is what we make with conviction. We cannot – and will not be available. Our immediate focus is the safety of our people in Ukraine and the support of our people in Russia.
“In discussions with governments around the world, we will also work on the detailed business implications, including the importance of a secure energy supply for Europe and other markets, in line with appropriate sanctions.”
Titan Petroleum has announced that it will terminate its joint ventures with Gazprom and related companies and leave the Sakhalin Liquefied Natural Gas (LNG) plant, selling its 27.5% stake. In the photo: Vladimir Putin
Shell said in a statement: “We expect that the decision to start the process of leaving the joint ventures with Gazprom and related companies will affect the carrying amount of Shell’s assets in Russia and will lead to impairment.”
British Business Minister Quassi Quarteng also took to Twitter to congratulate Shell on its decision to take over businesses.
He wrote: “Earlier today, I spoke with Shell CEO Ben van Beurden. Shell has rightly called for liberation from Russia – including Sakhalin II. British companies now have a strong moral imperative to isolate Russia.
Meanwhile, BP’s shares fell as much as 7% at the start of trading before regaining some of the land.
BP saw that a large part was erased from its value after the announcement of abandonment of 19.75% share as a result of the invasion of Ukraine
Shares of BP fell more than 4% at the beginning of trading today as it faces a $ 25 billion blow from the dump of shares in Russian energy giant Rosneft
The FTSE 100 index fell 1% at the beginning of trading as markets absorbed the huge package of sanctions imposed by the West
The decline will affect millions of people, as pension funds often invest in the company – although he says dividends will not be hit immediately.
The share in the Russian state oil producer was theoretically worth 14 billion dollars, but it is unclear whether the company will be able to sell – with speculation the holding could be captured by the Kremlin.
Other investments in the deal could result in a total loss of about $ 25 billion.
BP CEO Bernard Looney also resigned from the board of Rosneft with “immediate effect” after ministers warned that the relationship could not continue.
The move came after Russian President Vladimir Putin attacked Ukraine last week in what the BP chairman called an “act of aggression” with “tragic consequences”.