THE boss of Shell has said he is “sorry” for buying a shipment of Russian oil last week even as dozens of major international companies announced they would abandon the country over its war in Ukraine.
The business bought the oil last week at knock-down prices, as sanctions began to bite on the Russian economy.
“We are acutely aware that our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel – despite being made with security of supplies at the forefront of our thinking – was not the right one and we are sorry,” said chief executive Ben van Beurden.
The company said it would immediately stop buying Russian crude oil on the spot market and will shut service stations, aviation fuel and lubricants operations in Russia.
READ MORE: Rising Clyde: Strathclyde students launch digital publication all about the climate crisis
Shell confirmed it has around 500 service stations across Russia that will shut following the move.
The rest of the company’s exit from Russian oil and gas will take place over time.
The business said it will “withdraw from its involvement in all Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas (LNG) in a phased manner, aligned with new Government guidance”.
Profits from the remaining Russian gas that Shell will process will be sent to a fund and the business will work with humanitarian organisations to figure out how best to spend the money.
Van Beurden said: “Our actions to date have been guided by continuous discussions with governments about the need to disentangle society from Russian energy flows, while maintaining energy supplies.
“Threats today to stop pipeline flows to Europe further illustrate the difficult choices and potential consequences we face as we try to do this.”
He added: “As we have already said, we will commit profits from the limited, remaining amounts of Russian oil we will process to a dedicated fund.
“We will work with aid partners and humanitarian agencies over the coming days and weeks to determine where the monies from this fund are best placed to alleviate the terrible consequences that this war is having on the people of Ukraine.”
Last week Shell said it would end its involvement with the Nord Stream 2 pipeline which was intended to bring Russian gas into Europe.
It also said at the time it would exit its partnerships with Gazprom.
READ MORE: Russian oil ban: Volodymr Zelensky calls for global boycott on Russian products
On Tuesday the company said it might take weeks to complete the removal of Russian crude oil from its supply chains.
It said that withdrawing from Russian petroleum, piped gas and LNG is a “complex challenge” which will need “concerted action by governments, energy suppliers and customers”.
“A transition to other energy supplies will take much longer,” the company added.
It comes as Russia’s unprovoked invasion of Ukraine continues, with shelling seen in many civilian areas of the country.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here