Global oil and gas giant Shell said Monday that it is pulling out of Russia as President Vladimir Putin’s invasion of Ukraine continues to cost the country’s all-important energy industry foreign investment and expertise.
Shell announced its intention to exit its joint ventures with Russia’s state-owned energy giant Gazprom and related entities, including a 27.5% stake in a key liquefied natural gas project as well as 50% stakes in two projects that are developing oil fields in Siberia.
Shell also said it intends to end its involvement in Nord Stream 2, a controversial pipeline built to carry Russian natural gas to western Europe. German Chancellor Olaf Sholz halted certification of the project after Russia invaded Ukraine.
Russia’s economy is heavily dependent on fossil fuels, which account for about 60% of the country’s exports. Russia was the world’s third-largest oil producer in 2020, producing 10.5 million barrels of oil a day, or 11% of the world’s total, according to the U.S. Energy Information Agency.