Shell, BP Pull Business Out of Russia Following Invasion of Ukraine in Efforts to Apply Economic Sanctions
- Following Russia's invasion of Ukraine last week, energy companies such as Shell and BP have made the decision to stop all business operations in Russia
- This decision by the two companies is a move to place further economic sanctions on Russia but will also result in heavy losses for the energy firms
- Some social media users have applauded Shell for its decision, however, some people think that Shell should not be praised
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MOSCOW - Sanctions against Russia for invading Ukraine have intensified and petroleum and oil companies such as Shell and BP are now stopping all operations in the country.
Shell made the announcement on Monday, 28 February stating that it will also stop operations at its major liquefied natural gas plant. Shell is now the largest Western company to stop dealings with Russia, despite the country being an oil-rich country.
Source: Getty Images
According to SABC News, BP was the first company to pull operations. The British company made the decision to pull out from Russian oil giant Rosneft and this move could cost the company close to $25 billion (R385 billion). Norwegian company Equinox is also planning to stop business dealings in Russia as well.
Shell has noted that leaving its Russian stake will result in financial loss for the company. Shell owned a 27.5% stake in the flagship Sakhalin 2 LNG plant. By the end of 2021, Shell says it owned $3 billion(R45 billion) in non-current assets, according to Reuters.
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Shell's CEO Ben van Beurden says the loss of life in Ukraine is shocking and has resulted in senseless acts of military aggression. Beurden says Shell finds these acts deplorable since they threaten European security.
Netizens share their thoughts on Shell's decision
@LupaneVillager said:
"Dankie Shell, l am with the Ukrainians on this one! Say no to dictatorship."
@SS4ZN said:
"Good! They must exit our Wild Coast too!"
@Zilla_Mon said:
"Don't thank @Shell, the sanctions forced them to do it. Had there been zero sanctions they would still be doing business with Russia. When children were bombed and gassed they could not have cared less."
@NoSignofIntell1 said:
"Don't think for a second this is anything other than protecting their business interests."
@UbakaOgbogu said:
"Shell quits Russia. I hate Shell for reasons I won't get into here, but it is still interesting to see they actually have a red line."
Russia Ukraine conflict: Continued tension could impact South Africa's economy negatively in future
Briefly News previously reported that in the early hours of Thursday morning, 24 February, Russian President Vladimir Putin realised the fears of many world leaders and Ukrainian citizens by announcing that Russian soldiers would be invading Ukraine. The Russian president also warned other world leaders that should they try to intervene in his efforts, they could face severe consequences.
Putin's decision comes after months of speculation that Russia was making preparations to invade Ukraine by establishing military training posts near Ukrainian borders.
Many countries across the globe have now reacted to Russia's attack by placing various economic sanctions on the country, which could be expected to have a trickle-down effect on the rest of the world.
Source: Briefly News
