We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shell (SHEL) Withdraws From Russia, Halts Spot Purchases
Read MoreHide Full Article
Headquartered in London, the energy giant, Shell plc (SHEL - Free Report) , stated that it is withdrawing from the Russian oil and gas industry in a phased manner and is instantly discontinuing all spot purchases of Russian crude. This development is in line with the U.S. Government’s new guidelines of banning the import of oil and other energy sources from Russia, in response to Russia’s military campaign in Ukraine.
Shell also declared that it would not renew any Russian term contracts and close its service stations, aviation fuels and lubricants operations in the country. The company further said that it would eventually find substitutes for the Russian supply but stressed that it might take some time, leading to lower output at some of its refineries.
The oil major apologized after it faced criticism over buying the cargo of Russian crude at a reduced price after many other firms started to curb their purchases. SHEL mentioned that it would commit profits from its Russian oil purchases to humanitarian funds meant to alleviate the emergency in Ukraine.
Previously, Shell declared that it would exit its joint ventures with the Russian majority state-owned energy giant, Gazprom PJSC, and related entities, including its 27.5% interest in the Sakhalin-II liquefied natural gas facility and its 50% stake in the Salym Petroleum Development and the Gydan energy venture.
Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals, with operations spanning worldwide. The company is fully integrated as it participates in every aspect related to energy from oil production to refining and marketing. Shell plc was formerly known as Royal Dutch Shell plc.
ExxonMobil said that it is exiting the Sakhalin-1 project, an oil and gas operation on Sakhalin Island in Russia's Far East, which the company runs on behalf of an international consortium.
As of 2021, ExxonMobil’s holdings in Russia were valued at around $4 billion. XOM further mentioned that it is also dropping new investments in Russia.
BP announced that it is deserting its 19.75% stake in the Russian oil giant, Rosneft, in a sudden and pricey conclusion after almost 30 years of functioning in the energy-rich nation.
BP also mentioned that both of its nominated directors resigned from the Rosneft board with immediate effect. Further, the company will no longer report reserves, production, or profit for Rosneft.
Norwegian majority-state owned Equinor also declared its intentions to stop new investments in Russia and start the course to withdraw from its joint ventures in Russia.
Equinor operated in Russia for more than three decades and as of 2021, EQNR reportedly had $1.2 billion in non-current assets in the country.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Shell (SHEL) Withdraws From Russia, Halts Spot Purchases
Headquartered in London, the energy giant, Shell plc (SHEL - Free Report) , stated that it is withdrawing from the Russian oil and gas industry in a phased manner and is instantly discontinuing all spot purchases of Russian crude. This development is in line with the U.S. Government’s new guidelines of banning the import of oil and other energy sources from Russia, in response to Russia’s military campaign in Ukraine.
Shell also declared that it would not renew any Russian term contracts and close its service stations, aviation fuels and lubricants operations in the country. The company further said that it would eventually find substitutes for the Russian supply but stressed that it might take some time, leading to lower output at some of its refineries.
The oil major apologized after it faced criticism over buying the cargo of Russian crude at a reduced price after many other firms started to curb their purchases. SHEL mentioned that it would commit profits from its Russian oil purchases to humanitarian funds meant to alleviate the emergency in Ukraine.
Previously, Shell declared that it would exit its joint ventures with the Russian majority state-owned energy giant, Gazprom PJSC, and related entities, including its 27.5% interest in the Sakhalin-II liquefied natural gas facility and its 50% stake in the Salym Petroleum Development and the Gydan energy venture.
Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals, with operations spanning worldwide. The company is fully integrated as it participates in every aspect related to energy from oil production to refining and marketing. Shell plc was formerly known as Royal Dutch Shell plc.
Shell currently carries a Zacks Rank #3 (Hold). Apart from SHEL, energy companies to exit Russia following the turn of events include ExxonMobil (XOM - Free Report) , BP plc (BP - Free Report) , and Equinor (EQNR - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ExxonMobil said that it is exiting the Sakhalin-1 project, an oil and gas operation on Sakhalin Island in Russia's Far East, which the company runs on behalf of an international consortium.
As of 2021, ExxonMobil’s holdings in Russia were valued at around $4 billion. XOM further mentioned that it is also dropping new investments in Russia.
BP announced that it is deserting its 19.75% stake in the Russian oil giant, Rosneft, in a sudden and pricey conclusion after almost 30 years of functioning in the energy-rich nation.
BP also mentioned that both of its nominated directors resigned from the Rosneft board with immediate effect. Further, the company will no longer report reserves, production, or profit for Rosneft.
Norwegian majority-state owned Equinor also declared its intentions to stop new investments in Russia and start the course to withdraw from its joint ventures in Russia.
Equinor operated in Russia for more than three decades and as of 2021, EQNR reportedly had $1.2 billion in non-current assets in the country.