Shell exits equity partnership with Gazprom

“We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security,” said Shell’s Chief Executive Officer, Ben van Beurden.

Shell’s staff in Ukraine and other countries have been working together to manage the company’s response to the crisis locally. Shell will also work with aid partners and humanitarian agencies to help in the relief effort.

“Our decision to exit is one we take with conviction,” said van Beurden. “We cannot – and we will not – stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia. In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions.”

At the end of 2021, Shell had around US$3 billion in non-current assets in these ventures in Russia. Shell expects that the decision to start the process of exiting joint ventures with Gazprom and related entities will impact the book value of the company’s Russia assets and lead to impairments.

Shell’s Powering Progress strategy and financial framework remain unchanged. The company reiterate its progressive dividend policy and intent to distribute 20 - 30% of CFFO to shareholders in the form of dividends and share buybacks while targeting a strong balance sheet with long-term AA credit metrics. Shell stepped up its distributions by announcing a US$8.5 billion share buyback programme for 1H22, and expects to increase its dividend per share by 4% for 1Q22.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/02032022/shell-exits-equity-partnership-with-gazprom/