Shell PLC (NYSE:SHEL) on Tuesday announced its intentions to withdraw from Russian energy and oil in the wake of Russia's invasion of Ukraine.
What To Know: Shell said it plans to withdraw all involvement in Russian hydrocarbons, including crude oil, petroleum products, gas and liquefied natural gas. The company noted that it intends to do so in a phased manner, aligned with new government guidance.
Shell said it will immediately halt all spot purchases of Russian crude oil and shut down its service stations, aviation fuels and lubricants operations in Russia.
Why It Matters: The United States and its European allies have been discussing banning Russian oil imports. On Monday, the U.S. signaled a willingness to stand alone in banning imports, which added to the move in oil prices.
President Joe Biden is now expected to initiate the ban on Tuesday, according to several reports.
At 10:45 this morning, President Biden is expected to announce that the US is banning Russian energy imports.
— Kaitlan Collins (@kaitlancollins) March 8, 2022
What's Next: Last week, Shell purchased a cargo of Russian crude oil, but the company is now reversing its course of action.
"We are acutely aware that our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel – despite being made with security of supplies at the forefront of our thinking – was not the right one and we are sorry," said Ben van Beurden, CEO of Shell.
Shell now intends to commit profits from its remaining Russian oil supply to a dedicated fund. The company plans to work with aid partners and humanitarian agencies in order to determine the best way to help alleviate the consequences of rising geopolitical tensions.
Related Link: What Was It Like To Flee Ukraine Hours Before Russian Invasion? One Trader Shares His Story With Benzinga
SHEL Price Action: Shell has traded between $48.27 and $56.13 over a 52-week period.
The stock was up 2.87% at $53.04 at the time of publication.
Photo: courtesy of Shell.
