Shell is pulling out of Russia, dumping Gazprom deal

Shell is exiting its joint venture with Gazprom and its entities

Shell is calling it quits in Russia and has announced plans to exit its relationship with Gazprom and related entities.

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SHEL SHELL PLC 70.82 +0.45 +0.64%

On Monday, in a statement, CEO Ben van Beurden detailed the emotional decision. 

"Our decision to exit is one we take with conviction," said van Beurden. "We cannot – and we will not – stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia. 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."

Workers prepare equipment on the drilling tower of an exploratory well at Gazprom's Sarikamysh gas field in Shakhrinav district, some 31 miles west of Dushanbe. (Reuters/Nozim Kalandarov)

The unwinding of the joint venture includes a "27.5% stake in the Sakhalin-II liquefied natural gas facility, its 50% stake in the Salym Petroleum Development and the Gydan energy venture."

Shell also intends to end its involvement in the Nord Stream 2 pipeline project, as detailed in the announcement.