Shell apologized for its decision to buy oil from Russia and announced its “intent to withdraw from its involvement” in Russian oil and gas.
CNBC reported Shell purchased 100,000 metric tons of flagship Urals crude from Russia on Friday. The company defended the purchase in a statement, saying it has “acted throughout in accordance with what we have understood was the intent to allow energy flows from Russia for the time being in order to provide security of energy supply.”
Just days later, Shell issued an apology for the decision.
“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,” Shell Chief Executive Officer, Ben van Beurden, said in a statement.
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.”
Shell announces intent to withdraw from all Russian oil & gas, aligned with new government guidance.
— Shell (@Shell) March 8, 2022
As an immediate first step, we will stop all spot purchases of Russian crude oil, shut service stations, aviation fuels & lubricants operations in Russia.
The company’s CEO explained Shell’s “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.”
Van Beurden suggested the societal challenges “highlight the dilemma between putting pressure on the Russian government over its atrocities in Ukraine and ensuring stable, secure energy supplies across Europe.”
He continued, “But ultimately, it is for governments to decide on the incredibly difficult trade-offs that must be made during the war in Ukraine. We will continue to work with them to help manage the potential impacts on the security of energy supplies, particularly in Europe.”
The statement comes as the president is expected to announce a ban on Russian oil imports to the U.S. Tuesday, as Fox News reported.