'We will not stand by': Shell ends $3bn partnership with Russian gas firm Gazprom

28 February 2022, 18:02 | Updated: 28 February 2022, 19:15

Oil giant Shell has announced plans to sell its stake in all joint ventures with Russian partner Gazprom.
Oil giant Shell has announced plans to sell its stake in all joint ventures with Russian partner Gazprom. Picture: Getty/Alamy

By Sophie Barnett

Oil giant Shell has announced plans to sell its stake in all joint ventures with Russian gas firm Gazprom over Vladimir Putin's "senseless act of aggression" in Ukraine.

Listen to this article

Loading audio...

The company said it will sell its 27.5% stake in a Russian liquefied natural gas facility, a 50% stake in an oilfield project in Siberia and an energy joint venture.

It will also end its involvement in the Nord Stream 2 pipeline between Russia and Germany, which has been put on hold by ministers in Berlin.

Shell’s chief executive officer, Ben van Beurden said the firm "cannot - and will not - stand by" as Putin's troops descend on Ukraine.

"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," Mr van Beurden said.

Read more: BP to offload 19.75% stake in Russian oil firm Rosneft after Putin's 'act of aggression'

Read more: 'It's all we can do': Donations pile high as hundreds of Londoners rally round Ukraine

Putin seems to be ordering cluster attacks in Kharkiv

“Our decision to exit is one we take with conviction.

“We cannot – and we will not – stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia.

"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.”

The oil giant also says it will no longer be involved with the Nord Stream 2 gas pipeline, which was due to run between Russia and Germany.

Read more: Words of mass destruction: Truss vs Putin after Russia issues nuclear threat

Read more: Snake Island heroes who told Russian warship ‘go f**k yourself’ captured

Truss: 'Putin must lose'

Earlier in the day Foreign Secretary Liz Truss named Gazprom as one of the three million Russian companies who would be unable to access any funding from UK financial institutions as part of new sanctions.

This means Gazprom will struggle to refinance its debts in years to come.

Shell’s staff in Ukraine have been working to manage the company’s response to the crisis on the ground with Mr van Beurden stating: "Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia.

"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."

Read more: Defence sec clashes with Liz Truss as he tells untrained Brits not to fight in Ukraine

Read more: UK must have 'open door' asylum policy for Ukrainians, Shelagh Fogarty declares

Caller's black brother refused boarding on Ukrainian trains for days

The move comes after the shadow climate secretary, Ed Miliband, called on other energy companies to follow BP’s lead and cut ties with Russia.

He said: "Shell should now follow BP and divest its Russian holdings to isolate the Putin regime. These investments are crucial for Putin’s regime and these companies need to act."

On Sunday oil giant BP announced the firm will end its 19.75% shareholding in Russian oil company Rosneft.

The move sent its shares down by as much as 7.5% on Monday despite rising Brent Crude and natural gas prices.

BP said Russia's attack on Ukraine represented a "fundamental change" in how the company could operate there.

Rosneft is also part-owned by the Russian government, and BP has held a 19.75% stake in the firm since 2013.

Chief executive Bernard Looney also resigned from Rosneft’s board with "immediate effect" and BP's other Rosneft director Bob Dudley also resigned from Rosneft's board.

More Latest News

See more More Latest News

More than 2 million drivers are set to hit the road on Good Friday.

Easter Carmageddon: Over two million drivers to hit the road on Good Friday after Storm Nelson travel chaos

Michael Gove has slammed the water firm as a 'disgrace'.

Thames Water bosses branded a ‘disgrace’ as Michael Gove tells firm ‘not to punish consumers’ for its failings

South Africa Bus Crash

Girl, 8, the sole survivor as 45 die in bus crash off South Africa bridge

A spokesman has denied reports the sausage dog could be banned.

The wurst news is over: Germany denies claims of sausage dog ban

Israel Palestinians Britain Aid

UN top court orders Israel to open more land crossings into Gaza

Greece Confidence Vote

Greece’s government survives no-confidence motion called over rail disaster

A council has had to apologise following the incident.

Fury as parents offered version of school class photo without complex needs pupils

Conjoined twin who shot to fame with sister on The Oprah Winfrey Show marries army veteran in private ceremony

Conjoined twin who shot to fame with sister on The Oprah Winfrey Show marries army veteran in private ceremony

Israel Palestinians UN Security Council

Russia ‘abolishes’ monitoring of sanctions on North Korea with UN veto

Firefighters at the scene of a bus crash in Limpopo

Bus plunges from bridge in South Africa and erupts into flames, killing at least 45 and leaving child, 8, as lone survivor

Music-Green Day UN

Green Day to headline UN-backed global climate concert

Exclusive
Starmer has vowed to resurrect Boris Johnson's 'Levelling Up' policy

Failure to ‘level up’ Britain would be ‘catastrophic’, Wes Streeting admits, as Starmer vows to resurrect Johnson policy

Border Force staff will walk out from April 11

Hundreds of Border Force officers at Heathrow Airport to stage four-day strike

Stephen Bear was ordered to pay Ms Harrison £5,000.

Disgraced reality TV star Stephen Bear ordered to pay £27,000 over revenge porn conviction or face nine months in jail

Sam Bankman-Fried

FTX founder Bankman-Fried sentenced to 25 years in prison for crypto fraud

Exclusive
Covid no excuse for death of Finley Boden who was murdered by drug-addled parents, child protection chief says

Covid no excuse for death of Finley Boden who was murdered by drug-addled parents, child protection chief says