Oil Giant Shell Stops Buying Crude Oil From Russia

While the whole Western world signed thousands of sanctions against Russia, which occupied Ukraine, targeting Russia and the Russian people, it was expected that the sanctions would also be applied to natural gas and fuel imported from Russia. While it was stated that such a preparation was in question on the US and EU sides, the first indication of a possible sanction came in the past minutes.

Shell, a UK-based oil and gas company, has shared an announcement to include crude oil, petroleum products, gas and liquefied gas. to phase out its involvement with all Russian hydrocarbons. announced his decision. Shell, as the first step in this context, It will stop all spot purchases of Russian crude oil, that it will close service stations in Russia, aviation fuels and lubricants will terminate its operations. explained.

Shell CEO Ben van Beurden explains:

“Our decision last week to purchase a cargo of Russian crude to be converted into products like oil and diesel – despite being at the forefront of our supply security considerations – We are absolutely aware that it is not true, I am sad. As we said before, we will commit a profit to a special fund from the limited, remaining amount of Russian oil that we will process. We will work with aid partners and humanitarian organizations in the coming days and weeks to determine where the money from this fund can best go to alleviate the dire consequences of this war on the people of Ukraine.”

The company will immediately stop buying Russian crude from now on unless the governments direct it, will not renew futures contracts. It will also, in close consultation with governments, change the crude oil supply chain in such a way that Russia is abolished. Shell said that phasing out Russian oil products will require joint action by energy suppliers and customers. This shows that other oil giants may make similar decisions in the near future.