Shell Says Sorry for Buying Russian Oil

Shell has announced that it will no longer buy Russian oil and gas, and has apologised for snapping up the Kremlin's energy at a discount last week, according to the Telegraph.

The FTSE 100 energy behemoth said it would immediately suspend spot imports of Russian crude oil and phase out all other forms of energy, including gasoline and liquefied natural gas.

In Russia, it will also shut down its service stations, aviation fuels, and lubricants activities.

Shell was publicly chastised last week for purchasing a cargo of substantially discounted Russian oil, despite the fact that many merchants had spurned Moscow's energy as a result of the invasion of Ukraine.

The business expressed regret for the move and stated that all proceeds from the remaining Russian oil it owns would be directed to a special fund to aid Ukraine.

"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," said Ben van Beurden, Shell's chief executive.

BP, on the other hand, stated it would keep buying Russian oil under current contracts but would not enter into any new oil or gas agreements.

Following the invasion of Ukraine, both Shell and BP announced plans to leave Russia.

Shell has promised to cut ties with Russia's state-owned Gazprom by selling a 27.5 percent stake in the Sakhalin 2 liquefied natural gas facility and halting work on the Nord Stream 2 pipeline, which Germany blocked earlier this month.

BP said it would sell a 20% interest in Rosneft, the Kremlin-controlled oil behemoth, warning that the decision may cost it $25 billion.

Shell, on the other hand, came under fire last week for breaking ranks with western traders to go bargain shopping for Russian oil, buying a cargo for $28.50 a barrel less than the benchmark Brent price.

Ukraine's foreign minister, Dmytro Kuleba, slammed the corporation on Twitter, writing, "Doesn't Russian oil smell Ukrainian blood for you?"

Before backing down, Shell defended its decision as "tough" but necessary.

The move comes as oil prices hit their highest level since 2008 this week, owing to fears that the Ukraine conflict could disrupt global supplies.

In an effort to further suffocate President Vladimir Putin's coffers, US lawmakers are considering legislation that would prohibit all imports of Russian oil.

Fears that a ban would push up prices even further and exacerbate the continent's energy crisis have pided EU states.

As the crisis forces a redrawing of economic relationships, the West is scrambling to discover other energy supplies.

The EU has laid out measures to reduce its reliance on Russian gas imports by two-thirds this year, while the US has spoken with Venezuelan officials and is planning a trip to Saudi Arabia as it seeks alternative energy sources.

If necessary, the International Energy Agency said it would suggest that member countries release additional emergency oil stockpiles.

"We are closely monitoring the markets, consulting with our member countries, as well as other producing countries across the world," Fatih Birol, the organization's executive director, told Bloomberg. If and when it becomes essential, we will strongly advise our member countries to release additional [crude]."