Shell CEO Ben van Beurden speaking in Lisbon, Portugal, in November 2021. Photo: Horacio Villalobos Corbis/Getty Images
Shell's decision to pull out of Russia has cost the company roughly $5 billion so far, the energy giant said in an update released Thursday.
Why it matters: Major international oil companies, including BP and Exxon, divested from Russian energy companies or projects following the invasion, potentially significantly reshaping the West’s energy relationship with Russia.
- The losses will likely come in the form of reduced value of Russian assets, credit losses and contract terms, according to the update, which the company shared before the publication of its first-quarter earnings in May.
The big picture: After the start of the invasion, the London-based company first ended its relationship with the Russian energy company Gazprom, then later withdrew from Russian hydrocarbons altogether.
- Those moves came after it and London-based BP faced pressure from the United Kingdom's government to cut ties with Russia, as hydrocarbons exports are crucial for financing the Kremlin and its military.
Go deeper: Why it's so hard to quit Russian energy