Shell Announces It Will Stop Purchasing Crude Oil From Russia
Shell PLC announced that will be ceasing business operations with Gazprom, a hydrocarbon company in which the Russian government holds majority ownership.
This news comes on the heels after Shell received harsh criticism for purchasing 100,000 tons of discounted Russian crude oil. The foreign minister of Ukraine scolded the company for this decision, asking if the oil they purchased smelled like Ukrainian blood.
Shell defended its decision citing it only had supply chain issues in mind, but later apologized, saying “we didn’t take this decision lightly and we understand the strength of feeling around it.”
Shell has since released a statement announcing it will no longer be doing business with Russia, won’t renew any contracts, and will pursue new ventures with other oil suppliers.
Because Russia makes up approximately 12% of the global crude oil supply, this decision will be one of many to negatively affect the Russian economy. Shell also announced that it will be shutting down service stations, aviation fuels, and lubrication operations in Russia as well.
“We have been in intense talks with governments and continue to follow their guidance around this issue of security of supply, and are acutely aware we have to navigate this dilemma with the utmost care,” Shell said in a statement. “We welcome any direction or insights from governments and policymakers as we try to keep Europe moving and in business.”