Energy Giants Shell and British Petroleum End Partnership with Russian Oil Companies
The U.S. Treasury Dept is giving entities until May 25, to unload any investment in Russian-issued stocks or bonds as their trade won’t be allowed thereafter. That being the case, energy company Shell has ditched its partnership with Gazprom of Russia as sanctions against the country and its oligarchs have intensified. Shell is ending the Gazprom partnership by selling its 27.5% holdings in Sakhalin-II, its 50% stake in Salym Petroleum Development and its participation in the Nord Stream 2 pipeline project.
Shell CEO Ben van Beurden said that their immediate concern is the safety of their employees in Ukraine and of supporting their staff in Russia. He added that they are in conference with governments around the world, working through business implications and of securing the supplies of energy in Europe and other markets in accordance with the related sanctions.
CEO van Beurden said that like the rest of the world, they deplore Russia’s senseless act of military aggression, resulting not only to loss of life in Ukraine. Russia’s act also threatens European security.
BP Also Unloaded Stake in Rosneft
Actually, Shell’s rival, The British Petroleum Company (BP) had divested its 19.75% holding in a Russian-majority owned oil company named Rosneft.
Russia’s invasion of Ukraine had also forced to BP to end it more than 30 years of operating in Russia. The withdrawal included the immediate resignation of BP CEO Bernard Looney and BP executive Bob Dudley from the Rosneft board.