Despite its promise to stop, Shell continues to trade gas from Russia.

Shell still trading Russian gas despite pledge to stop

Shell is as yet exchanging Russian gas over a year in the wake of swearing to pull out from the Russian energy market.

According to research conducted by the advocacy organization Global Witness, the business was involved in nearly an eighth of Russia’s shipborne gas exports in 2022.

Shell was accused of accepting “blood money” by an adviser to Ukrainian President Vladimir Zelensky, Oleg Ustenko.

Shell said the exchanges were the aftereffect of “long haul authoritative responsibilities” and don’t disregard regulations or approvals.

On May 9, a massive tanker carrying more than 160,000 cubic meters of liquefied natural gas, or LNG, which is gas that has been compressed into liquid form, left the port of Sabetta on the Yamal peninsula in the far north of Russia.

That freight was bought by Shell prior to going to its final location, Hong Kong.

Global Witness looked at data from the Kpler database and determined that it is one of eight LNG cargoes that Shell has purchased from Yamal this year.

Global Witness estimates that Shell was one of the top five traders of LNG produced in Russia that year and was responsible for 12% of Russia’s seaborne LNG trade.

Shell apologized for purchasing a cargo of Russian oil in March 2022, weeks after the invasion of Ukraine, and announced its intention to withdraw from Russian oil and gas.

It stated that it would begin a “phased withdrawal from Russian petroleum products, pipeline gas and LNG,” sell its service stations and other businesses in Russia, and stop buying oil from Russia. In any case, it cautioned that it would be a “complicated challenge”.

From that point forward, it has continued to take cargoes of LNG from two Russian ports, the one at Yamal and one at Sakhalin in the far east.

Shell used to be a minority financial backer in the Sakhalin gas project, however deserted that case in September last year after the Russian government moved its portions to a nearby business – and from that point forward has taken no gas from Sakhalin.

However, it actually respects the agreement with the Russian LNG organization Novatek, which obliges it to purchase 900,000 tons per year from Yamal until the 2030s, as per the Reuters news office.

Novatek is Russia’s second greatest gas organization, and the expenses it pays are a huge supporter of the Russian government’s spending plan.

Oleg Ustenko, a counselor to the Ukrainian president, said: ” It’s not difficult: Shell is contributing to the financing of Russia’s brutal aggression against the Ukrainian people and putting money into Putin’s pockets by continuing to trade Russian gas.

“Instead of lining the pockets of their shareholders, the vast sums that Shell and the entire oil industry have made in Russia should be used to help fund the reconstruction of Ukraine.”

Shell’s spokesperson stated, ” Shell has quit purchasing Russian LNG on the spot market, yet at the same time has a few long haul legally binding responsibilities. This complies completely with the sanctions and other applicable laws and regulations of the nations in which we conduct business.

“There is a situation between coming down on the Russian government over its barbarities in Ukraine and guaranteeing steady, secure energy supplies. The extremely difficult trade-offs that need to be made are up to the governments, who must decide.”

The world’s largest LNG trader, Shell made billions of dollars last year trading oil and gas, which is not subject to European sanctions.

Last year, Russia drastically reduced its gas pipeline deliveries, but it has increased the amount of gas it ships, including to Europe.

The UK has not imported any Russian gas for more than a year, while EU legislators are attempting to diminish how much Russian LNG the coalition imports. EU Energy Commissioner Kadri Simson urged nations and businesses to stop purchasing Russian gas and not to sign new contracts in March.

“It’s very much past due that the exchanging of Russian LNG is taken a gander at with a similar disdain as Russian oil exchanging. “Senior campaigner Jonathan Noronha-Gant of Global Witness stated that “targeting Putin’s energy income cannot be about symbolic measures but must concretely put a stop to the huge sums that cement his power” from fossil fuels.

According to the Global Witness analysis, the energy company TotalEnergies, based in France, was a major trader in Russian LNG and has a minority stake in the Yamal project.

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