Shell Retains Shares in Russian Companies

Shell, a major player in the global energy sector, has maintained its investment in Russian companies despite the geopolitical tensions arising from the invasion of Ukraine. As of April 2023, Shell held a 27.5% stake in the Sakhalin Energy Investment Company (SEIC), which is a joint venture that includes Gazprom, Mitsui, and Mitsubishi. Gazprom, the Russian state-owned gas company, holds a controlling 50% interest in SEIC, while Mitsui and Mitsubishi own 12.5% and 10% respectively. This joint venture is significant as it operates in the Sakhalin-2 liquefied natural gas project, which is one of the largest in the world and plays a crucial role in supplying energy to various markets, particularly in Asia. Shell's continued involvement in SEIC raises questions about the company's commitment to its sustainability goals and its response to international sanctions imposed on Russia due to its military actions in Ukraine. The decision to retain shares in Russian companies reflects the complexities faced by multinational corporations in balancing economic interests with ethical considerations in a rapidly changing geopolitical landscape.