Shell stated on Monday that it plans to quit joint ventures with Russia’s state-owned gas business Gazprom, becoming the latest major to divest stakes in Russia following the country’s invasion of Ukraine.
Shell announced Monday that it will sell a 27.5 percent ownership in a liquefied natural gas plant on Sakhalin Island, Russia; a 50% investment in the Salym Petroleum Development, a set of oil resources in West Siberia; and a 50% stake in an energy venture on the Gydan peninsula.
The corporation stated that its assets in the projects were worth around $3 billion at the end of last year and that its choice to exit them would result in impairments, or accounting losses.
“Our decision to depart is one we take with conviction,” Shell CEO Ben van Beurden said in a statement on Monday, adding that the firm will “work through the particular business ramifications” in order to comply with a growing list of sanctions imposed on Russia.
Shell, which did not immediately answer to Forbes’ request for comment, did not specify a date for its divestment or clarify how it would leave its interests, but it did announce it will also withdraw from the Nord Stream 2 pipeline, a $11 billion undersea project connecting Russia and Germany.
The company’s move comes a day after fellow oil major British Petroleum announced it will sell a roughly 20% interest in Rosneft, a state-owned corporation that supplies Russia with much of its gasoline.