Shell defends 'difficult' decision to buy Russian crude oil

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Despite the invasion and bombardment of Ukraine, Shell purchased Russian crude oil.

The decision to purchase the fuel at a discounted price was difficult, according to the oil giant.

It confirmed that it had bought a cargo of Russian crude oil on Friday, but it had no alternative.

Ukrainian Foreign Minister Dmytro Kuleba asked if Russian oil smelled of Ukrainian blood.

Mr Kuleba called on businesses to apply pressure on Russia despite the purchase not violating any sanctions.

I am told that Shell discretely bought some Russian oil yesterday. One question to @Shell: doesn’t Russian oil smell Ukrainian blood for you? I call on all conscious people around the globe to demand multinational companies to cut all business ties with Russia.

— Dmytro Kuleba (@DmytroKuleba) March 5, 2022

Shell had no alternative crude supplies which would reach Europe in time, so the company was trying to maintain supplies of fuels.

In a statement, the firm said it isappalled by the war in Ukraine and that it has stopped most activities involving Russian oil.

Russian oil makes up 8% of the work supply.

One of Shell's refineries is one of the biggest in Europe.

The energy industry cannot assure continued provision of essential products to people across Europe over the next few weeks without an unimpeded supply of crude oil.

Cargoes from alternative sources wouldn't have arrived in time to avoid disruptions.

We did not take this decision lightly and we understand the strength of feeling around it.

The firm said that it will try to choose alternatives to Russian oil, and that profits from Russian oil will go to a fund for people in Ukraine.

Shortly after the invasion, the company announced that it would end all of its joint ventures with the Russian energy company.

The company will sell its stake in a major natural gas plant and two oilfield projects in Siberia.

It will no longer be involved in the Nord Stream 2 project. German ministers put a hold on the project.

In a statement issued on Monday, Shell said that it expected the move, which will also apply to any related entities to Gazprom, to be worth about $3 billion. The associated costs will be marked on the balance sheet later this year.

Shell followed on from the likes of BP, which had already announced that it would sell its stake in the Russian state-owned oil giant.

It was too soon to say who would be selling the stake in the company.

The conflict made Equinor's current positionuntenable, and the company decided to leave Russia.