Jakarta –
Oil giant Shell announces it will cut ties with Russia. With this decision, the company is projected to receive a loss of up to US$ 5 billion or equivalent to Rp. 71.7 trillion (exchange rate of Rp. 14,346).
Quote from BBC, Friday (8/4/2022), Shell has cooperated with Russia to buy cheap oil from that country. However, Shell was under pressure to cut off the cooperation because of Russia’s invasion of Ukraine.
Previously, Shell came under criticism for buying cheap Russian crude shortly after the war started. In response to outrage, the company apologized and promised to stop buying oil from Russia.
Shell says it will cost between US$4-5 billion to cut ties with Russia. Although it will terminate the cooperation, Shell explained that it would not terminate the contract that was signed before the war.
“Shell does not renew long-term contracts for Russian oil, and will only do so under explicit government directives, but we are legally obligated to accept shipments of crude oil purchased under contracts signed prior to the invasion,” Shell said.
As part of Shell’s planned departure from Russia, the company will dispose of a 27.5% stake in a Russian liquefied natural gas facility, dispose of a 50% stake in an oilfield project in Siberia, and terminate an energy joint venture.
This will also end its involvement in the Nord Stream 2 pipeline between Russia and Germany, which has been postponed by ministers in Berlin.
Currently, oil prices are soaring. This is because of the war between Russia and Ukraine. Russia is one of the world’s biggest crude exporters and fears supply will be disrupted by the conflict.
Watch the video ‘Chanel Stop Selling Clothing Products to Perfumes to Russians’:
(eng)
–
