Shell to Exit Joint Ventures With Gazprom, Citing Russia Invasion of Ukraine

By Anthony O. Goriainoff

Shell PLC said late Monday that it intends to exit its joint ventures with Gazprom PJSC and related entities, and that it will also end its involvement in the Nord Stream 2 pipeline project.

The London-listed energy giant said that at the end of 2021, it had around $3 billion in non-current assets in ventures in Russia and that it expected its decisions to hurt the book value of its Russia assets and lead to impairments.

The company said it will work through the detailed business implications "including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions."

At the end of 2021, Shell had around $3 billion in non-current assets in these ventures in Russia.

The company said its decision includes the 27.5% stake in the Sakhalin-II liquefied natural gas facility, its 50% stake in the Salym Petroleum Development and the Gydan energy venture.

"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," the company said.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

February 28, 2022 13:13 ET (18:13 GMT)

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