Shell is set to incur a $5 billion loss when it relinquishes it assets in Russia as part of plans to withdraw from the country.
The company has pledged to no longer buy oil from Russia, but contracts signed before the invasion of Ukraine will be fulfilled.
Shortly after the war began, Shell was criticised for buying Russian crude oil at a cheap price. As a consequence of the criticism, the company apologised and pledged to stop buying oil from Russia.
The company now says it would cost between $4 billion and $5 billion to cut ties with the country.
The rise in oil prices is due to Russia being one of the world’s largest exporters of the commodity and fears of supplies being disrupted because of the conflict.
As part of Shell’s withdrawal plans, the company said previously it would offload a 27.5% stake in a Russian liquefied natural gas facility, a 50% stake in an oilfield project in Siberia, as well as an energy joint venture.
The company will also end its involvement in the Nord Stream 2 pipeline between Russia and Germany.
Shell plc is a British publicly traded multinational oil and gas company headquartered at Shell Centre in London, United Kingdom. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New York Stock Exchange. It is one of the oil and gas “supermajors” and by revenue and profits is one of the largest companies in the world, ranking within the top 10 of the Fortune global 500 since 2000.