Shell says its decision to withdraw from Russia in response to the invasion of the country Ukraine it has already cost the international energy giant up to $ 5 billion.
Reducing the value of Russian assets, credit losses and “onerous” contract terms will reduce earnings in the first three months of the year by $ 4 billion to $ 5 billion, London-based Shell said on Thursday. The estimate was part of an update released before the full first quarter earnings release on May 5th.
In 2021, Shell made a profit of almost $ 19.3 billion.
Shell said last month that it was “dismayed” by the invasion of Ukraine, as it announced plans to leave the joint ventures with Russian state energy company Gazprom. These assets alone were valued at about $ 3 billion at the end of last year, according to Shell’s annual report.
The new sanctions target Russia’s main banks and the daughters of President Vladimir Putin
05:35
The company later said it would stop buying russian oil and withdraw from any involvement with Russian hydrocarbons “regardless of their financial implications.”
Shell’s decision came when the United Kingdom joined governments around the world imposing sanctions against Russian companies, banks and wealthy people in an effort to pressure President Vladimir Putin to withdraw his forces from Ukraine.
Energy companies are under pressure to sever ties with Russia because oil and natural gas exports they are crucial to funding the Kremlin and its military.
More than 600 companies have them close its operations in Russia or they took other measures to reduce their business in the country, according to a count maintained by researchers at the Yale School of Management.
Add Comment