Shell to offload stakes in Russia’s Gazprom projects

Shell PLC said Monday it would exit its joint ventures with Russia’s state-owned natural-gas giant Gazprom and related entities, including stakes in a liquified natural gas facility and other oil and gas projects worth about $3 billion. “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,” Shell Chief Executive Officer Ben van Beurden said in a statement. “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.” Shell valued its assets in the ventures with Gazprom at around $3 billion at the end of 2021. Exiting the joint ventures will lead to impairments, Shell said, without details. Shell reaffirmed its dividend and share buyback programs and said it expects to increase its dividend by 4% for the first quarter. Shell’s decision follows BP PLC’s move to offload its nearly 20% stake in Russian government-controlled oil giant Rosneft as the world reacts the Russian invasion of Ukraine.

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