Shell defends resolution to purchase discounted oil from Russia

Oil main Shell has sought to defend its resolution to purchase a heavily-discounted consignment of oil from Russia, saying it might commit the income to a fund devoted to humanitarian assist for Ukraine.

On Friday, Shell bought 100,000 metric tons of flagship Urals crude from Russia. It was reportedly purchased at a file low cost, with many corporations shunning Russian oil resulting from Moscow’s unprovoked invasion of its neighbor. The acquisition didn’t violate any Western sanctions.

Shell stated in an announcement late Saturday that it had been in “intense talks with governments and proceed to comply with their steering round this problem of safety of provide, and are acutely conscious now we have to navigate this dilemma with the utmost care.”

“We did not take this resolution calmly and we perceive the power of feeling round it,” the assertion learn.

The corporate has confronted heavy criticism from Ukraine’s International Minister Dmytro Kuleba, who desires corporations to chop all enterprise ties with Russia.

“One query to Shell: does not Russian oil odor Ukrainian blood for you?” Kuleba stated in a tweet Saturday.

Talking to CNBC Monday, Kuleba launched a scathing assault on corporations nonetheless doing enterprise with Russia, saying that some main oil corporations may discover themselves on the mistaken aspect of historical past.

“The world will choose them accordingly. And historical past will choose them accordingly,” he instructed CNBC’s Hadley Gamble.

Shell stated earlier this week that it meant to exit its joint ventures with Russian fuel large Gazprom and its associated entities.

In the meantime, rival BP introduced Sunday final week that it was offloading its 19.75% stake in Rosneft, a Russian-controlled oil firm, probably hitting the British oil main with a expensive $25 billion cost.

In its new assertion, Shell stated Saturday that the corporate welcomed “any path or insights” from governments or policymakers.

“We are going to proceed to decide on alternate options to Russian oil wherever doable, however this can not occur in a single day due to how important Russia is to world provide,” the corporate stated within the assertion.

—Jessica Bursztynsky contributed to this text.