Copyright © 2024

The work of Euromaidan Press is supported by the International Renaissance Foundation

When referencing our materials, please include an active hyperlink to the Euromaidan Press material and a maximum 500-character extract of the story. To reprint anything longer, written permission must be acquired from [email protected].

Privacy and Cookie Policies.

Shell continues trading Russian gas despite pledge to withdraw

shell continues gas trade Russian
Photo: Open source
Shell continues trading Russian gas despite pledge to withdraw
Despite pledging to withdraw from the Russian energy market, Shell continues to trade Russian gas, sparking controversy and accusations of accepting “blood money.” The multinational oil and gas company says there is a “dilemma” between pressuring Russia and stable energy supplies.

The multinational oil and gas company Shell is still trading Russian gas more than a year after it pledged to withdraw from the Russian energy market, BBC reports. The company was involved in nearly an eighth of Russia’s shipborne gas exports in 2022, as per the analysis from campaign group Global Witness.

Oleh Ustenko, an adviser to Ukrainian President Volodymyr Zelenskyy, accused Shell of accepting “blood money.” However, Shell defended its actions by stating that the trades resulted from “long-term contractual commitments” and do not violate laws or sanctions.

In May, a large tanker carrying over 160,000 cubic meters of liquefied natural gas (LNG) purchased by Shell left the port of Sabetta, on the Yamal peninsula in Russia’s far north. This was one of eight LNG cargoes that Shell has bought from Yamal this year, according to data from the Kpler database analyzed by Global Witness.

In March 2022, following the invasion of Ukraine, Shell apologized for buying a cargo of Russian oil and announced its intention to withdraw from Russian oil and gas. It has since sold its service stations and other businesses in Russia and ended its joint ventures with the state energy giant Gazprom. However, it continues to honor its contract with the Russian LNG company Novatek, which obliges it to buy 900,000 tonnes a year from Yamal until the 2030s, according to Reuters.

Ustenko argued, “It is quite simple: by continuing to trade in Russian gas, Shell is putting money into Putin’s pockets and helping to fund Russia’s brutal aggression against the people of Ukraine.” He suggested that the profits made by Shell and the oil industry in Russia should be used to fund the reconstruction of Ukraine.

A spokesman for Shell responded, “There is a dilemma between putting pressure on the Russian government over its atrocities in Ukraine and ensuring stable, secure energy supplies. It is for governments to decide on the incredibly difficult trade-offs that must be made.”

Despite the controversy, Shell remains the world’s largest trader of LNG, which is not subject to European sanctions. Russia has increased the amount of gas it supplies by ship, including to Europe, even as it reduced its pipeline deliveries last year.

You could close this page. Or you could join our community and help us produce more materials like this.  We keep our reporting open and accessible to everyone because we believe in the power of free information. This is why our small, cost-effective team depends on the support of readers like you to bring deliver timely news, quality analysis, and on-the-ground reports about Russia's war against Ukraine and Ukraine's struggle to build a democratic society. A little bit goes a long way: for as little as the cost of one cup of coffee a month, you can help build bridges between Ukraine and the rest of the world, plus become a co-creator and vote for topics we should cover next. Become a patron or see other ways to support. Become a Patron!

To suggest a correction or clarification, write to us here

You can also highlight the text and press Ctrl + Enter

Please leave your suggestions or corrections here

    Euromaidan Press

    We are an independent media outlet that relies solely on advertising revenue to sustain itself. We do not endorse or promote any products or services for financial gain. Therefore, we kindly ask for your support by disabling your ad blocker. Your assistance helps us continue providing quality content. Thank you!

    Related Posts