September 28, 2022

The Catholic Transcript

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Shell announces its exit from Russia but buys Russian oil at a lower price - 04/03/2022

Shell announces its exit from Russia but buys Russian oil at a lower price – 04/03/2022

although She announced her departure from RussiaShell continues to do business with the state of Vladimir Putin and has increased its profits during the war in Ukraine.

Shell is the world’s largest oil company, including a strong share in the Brazilian market. The subsidiary operating in Europe bought a shipment of key crude oil sold by Russia at a record discount, indicating its intention to maintain transactions with the country.

According to Bloomberg, which monitors this market, the oil company paid $28.50 less than the value of Brent crude – an international benchmark for oil trading, which rose after the invasion of Ukraine and topped $110.

The price includes delivery, which means that Shell will not be responsible for the transportation of the goods.

Governments have not yet imposed sanctions on Russian oil and gas, fearing the impact of the measures on oil prices. fuel Hence on inflation.

But the Shell purchase has a symbolic and even encouraging weight for the rest of the market, given that it is the world’s largest oil company. The purchase indicates that, even with difficulties and at low prices, the Russians will continue to find buyers for oil extracted in the Urals region.

Shell announced on Monday (28th) that it will withdraw from all of its Russian operations, including the Sakhalin 2 LNG plant, in which it holds a 27.5% stake, in partnership with the Russian gas giant Gazprom. The decision came a day after its rival, BP, announced that it would sell its stake in Russian oil company Rosneft.

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the other side

In response to the column, Shell stated that it would continue to reduce the use of oil from Russia “with other alternatives to crude oil available, but this is a very complex decision, as the commodity coming from the Russian market plays an important role in the global supply, and in the current market situation, there is Relative shortage of alternatives.

The company added that everyone was “shocked by the events in Ukraine”. “We have already made clear our intention to exit our joint ventures with Gazprom – controlled by the Russian government – and related entities, as well as to terminate our participation in a major gas pipeline connecting Russia with the rest of Europe,” the statement says.

“Shell has also stopped most of its activities related to Russian oil. However, we continue to acquire the commodity and other derivatives of some refineries and chemical plants to ensure the production of the fuels and essential products that people and businesses depend on every day,” the company says.

The company also says that, in compliance with the sanctions currently in force, it is working to “provide our customers in a safe manner in Europe and other markets”.