Shell to stop buying Russian oil, natural gas and will shut service stations in Russia

8 March 2022, 11:05 | Updated: 8 March 2022, 11:16

Oil giant Shell has announced it will stop buying Russian oil and gas and will shut all service stations in Russia.

The company apologised for buying a shipment of Russian oil last week at knock-down prices as it promised to slowly end its involvement in all Russian oil, gas and petroleum.

"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 chief executive Ben van Beurden.

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The business said it will immediately stop all spot purchases of Russian crude oil and will shut its service stations, aviation fuel and lubricants operations in Russia.

Withdrawal from other associations with Russia will happen "in a phased manner, aligned with new government guidance", the company said.

The announcement follows the withdrawal of several major international companies from Russia following its unprovoked full invasion of Ukraine.

Putin last night threatened to close the gas pipeline that pumps almost half of Europe's gas if there is a boycott of Russian fossil fuels. There are warnings this action could push up oil prices over $300 per barrel.

Britain is being urged to ramp up production in the North Sea and Germany is facing calls to open up its historic gas fields.

Oil prices have spiked to their highest levels since 2008 on Monday and Brits have reported seeing prices at pumps of over 160p per litre.

UK petrol prices have hit an average of 155p a litre, the AA motoring group said.