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Oil giant Shell to take $5bn hit by leaving Russia

Oil giant Shell has confirmed it will take a hit of up to $5bn from offloading its Russian assets as part of plans to withdraw from the country, the BBC reports.

The firm has pledged to no longer buy oil, but contracts signed before the war in Ukraine will be fulfilled.

The costs of Shell no longer doing business in Russia include quitting joint ventures with Gazprom.

Shell was criticised when it bought Russian crude oil at a cheap price shortly after the war began.

In response to the outrage, the company apologised and pledged to stop buying oil from Russia.

The company said it would cost between $4bn and $5bn to cut ties with the country.

“Shell has not renewed longer-term contracts for Russian oil, and will only do so under explicit government direction, but we are legally obliged to take delivery of crude bought under contracts that were signed before the invasion,” the company said.

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