Shell, Equinor Quit Russian Joint Ventures

01.03.2022 - Hot on the heels of BP’s decision to quit its Russian shareholding, Shell and Equinor have announced they too will exit their joint ventures in the country, following its invasion of Ukraine.

Shell will withdraw from its partnership with Gazprom and related entities, including a 27.5% stake in the Sakhalin-II LNG facility, a 50% share in the Salym Petroleum Development and the Gydan energy venture.

The UK energy giant will also end its involvement in Nord Stream 2, the controversial pipeline built to transport gas from Russia to Germany in which it invested about $1 billion. Germany has halted the certification process on the pipeline, which is 50% owned by Gazprom.

In total, Shell has about $3 billion in Russian assets.

“Our decision to exit is one we take with conviction,” said Shell CEO Ben van Beurden. “In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions.”

Norwegian energy group Equinor said it is stopping new investments in Russia and starting the process of exiting its joint ventures. Equinor president and CEO Anders Opedal said the company’s position in the current situation was untenable.

Like BP, Equinor has been present in Russia for more than 30 years and entered into a cooperation agreement with Rosneft in 2012. Its assets in the country are valued at $1.2 billion.

Author: Elaine Burridge, Freelance Journalist