Oil giant Shell pulls out of energy investments in Russia over war

LONDON (AP) — Shell says it is pulling out of Russia as President Vladimir Putin’s invasion of Ukraine costs the country’s all-important energy industry foreign investment and expertise.

Shell announces its intention to exit its joint ventures with Gazprom and related entities, including its 27.5% stake in the Sakhalin-II liquefied natural gas facility, its 50% stake in the Salym Petroleum Development, and the Gydan energy venture.

Shell also intends to end its involvement in the Nord Stream 2 pipeline project.

“We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security,” says Shell’s chief executive officer, Ben van Beurden.

The move comes as a day after rival BP announced plans to shed its almost 20% stake in Rosneft, which is controlled by the Russian state. Also Monday, Norway’s Equinor says it would halt new investment in Russia and begin selling its holdings in the country.

Shell’s most important investment in Russia is its stake in the Sakhalin-II project in the waters near Sakhalin Island off Russia’s east coast. Japan-based Mitsui owns 12.5% of the project and Mitsubishi holds 10%.