Big Oil continues its retreat from Russia as Shell condemns Putin's 'senseless act of military aggression'

Shell is pulling out of Russia, the latest in a string of corporate departures from the country.

Shell CEO Ben van Beurden said in a statement that they were shocked by the loss of life in Ukraine and deplored the act of military aggression which threatens European security.

The company announced that it was selling off its joint ventures with Russian energy company Gazprom and related businesses. The project was to transport gas between Russia and mainland Europe.

Since the fall of the Soviet Union, many companies have moved their headquarters to Russia. Shell's announcement is the latest example of the concrete financial action many firms are taking in addition to issuing statements condemning Russia's actions in Ukraine.

Shell said that its exits will lead to impairments. At the end of 2021, Shell had $3 billion worth of assets in its Russian ventures.

The announcement by Shell came a day after BP said it was dumping its 20% stake in the Russian oil giant. The 30-year business partnership between the two energy giants was ended by Russia's invasion of Ukraine, according to Helge Lund, the chair of the company. The company will take a $25 billion hit by the end of the first quarter.

Equinor, majority-owned by the Norwegian state, said it plans to sell its Russian joint ventures. It had a lot of non-current assets in Russia.

The world's largest wealth fund said it will sell its Russian assets.

The United States and Saudi Arabia are the largest oil producers in the world, according to the International Energy Agency. Russia is a major gas supplier to Europe, accounting for one-third of the European Union and the UK's demand in 2021, according to the IEA.

Concerns about energy supplies to Europe and other markets will be worked on by Shell. It said it is sticking to its decision.

Shell's van Beurden said the decision to exit is one they take with conviction.