Mar 2, 2022
Shell Is Said to Continue Purchasing Russian Oil and Gas
(Bloomberg) -- Shell Plc, Europe’s largest oil company, is continuing to purchase oil and gas from Russia in the wake of the country’s invasion of Ukraine, according to a person briefed on the matter.
The company is in discussion with governments and will comply with any changes in regulations, the person said.
The decision may help calm an oil trading and shipping market that’s become paranoid about touching Russian barrels for fear of a sanctions backlash following the invasion. The person didn’t go into details about specifics of purchases.
While Shell said on Monday that it was exiting its assets in Russia -- including its stake in the large Sakhalin-2 liquefied natural gas plant -- the company is also a giant in oil and gas trading, handling about 12 million barrels a day of petroleum.
Since the invasion, tanker companies have been wary of collecting Russian oil, causing freight costs to surge.
Prices of Russia’s main export crude, Urals, have plummeted to record discounts as traders increasingly shun the grade, and refineries race to secure alternative supplies from other markets. However, there are currently no sanctions in place preventing companies from purchasing crude, refined products and gas from Russia.
(Updates with context from third paragraph.)
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