Kremlin Seeks €1 Billion in Legal Action Against Shell Over Russian Exit

[Social Media]

 

Russia is pursuing more than €1 billion in damages from Shell following the British oil and gas giant's decision to exit the country in response to Vladimir Putin’s invasion of Ukraine. The Russian prosecutor general filed a lawsuit against several Shell entities this month, with a hearing scheduled for December 11, according to court documents.

 

The legal action follows Shell’s decision to withdraw from Russia in 2022, a move that resulted in a $5 billion write-down on its assets. One of Shell’s most significant holdings in Russia was a 27.5% stake in the Sakhalin-2 oil and gas field, a joint venture with Russian state-owned gas company Gazprom and Japanese firms Mitsui and Mitsubishi. However, following Shell's exit, the Russian government seized the joint venture's assets and transferred them to a domestic entity. 

 

Moscow offered all partners an equivalent stake in the new business, but Shell refused to sign agreements with the new entity, objecting to the forced transfer. In response, Russia sold off Shell's stake in Sakhalin-2. Russian media reports at the time suggested that President Putin personally approved the sale, transferring Shell's share to a company called Novatek, which later handed it over to a Gazprom subsidiary.

 

Shell received 94.8 billion roubles (about £740 million) in compensation, which was deposited into a Russian bank account. However, Shell has not recognized the transaction and still considers itself the rightful owner of its stake in the Sakhalin-2 project. Despite the compensation payment, the British company remains locked in a legal battle over the situation. 

 

Now, prosecutors in Moscow are seeking damages against Shell, although they have not publicly disclosed the reasons behind their claim. Shell previously took a $1.6 billion charge related to Sakhalin-2 in the first quarter of 2022. A Shell spokesperson has yet to comment on the latest legal proceedings.

 

The lawsuit adds another layer to the ongoing tension between Shell and the Russian government, highlighting the broader economic fallout from international companies’ decisions to leave Russia in the wake of its invasion of Ukraine.

 

Based on a report from the Daily Telegraph 2024-10-17

 

 

 

[SAFETY FIRST]

7 minutes ago, Social Media said:

Russia is pursuing more than €1 billion in damages from Shell following the British oil and gas giant's decision to exit the country

 

 the British company remains locked in a legal battle over the situation. 

I thought Shell was a Dutch company. 

 

Do you mean BP? 

 

Edited October 16 by SAFETY FIRST

[Dave0206]

I think putin should personally go to the Hague to pursue his claim for this billion he feels Russia is owed .

 

[RayWright]

8 hours ago, SAFETY FIRST said:

I thought Shell was a Dutch company. 

 

Do you mean BP? 

 

Use to be, but that changed in early 2022 when the 2005 Royal Dutch Shell PLC company, headquartered in the Netherlands and the UK based Shell PLC merged into a single entity, confusingly now called Shell PLC, and headquartered in the UK. 

 

[Thingamabob]

10 hours ago, SAFETY FIRST said:

I thought Shell was a Dutch company. 

 

Do you mean BP? 

 

As a former BP employee I can confirm this does not refer to BP. I can further confirm that you are correct.  The 60% majority in the parent company, known as Royal Dutch Shell, is Dutch,  while the British shareholding is 40%.

[NativeBob]

The losses of oil companies from exodus are huge. Abandoned projects, human resources they grew and taught, equipment and many others are astonishing.

Worst than sudden "flush" from Afghanistan.

[Srikcir]

12 hours ago, Social Media said:

Russia is pursuing more than €1 billion in damages from Shell following the British oil and gas giant's decision to exit the country in response to Vladimir Putin’s invasion of Ukraine.

Shell should be counter suing Russia for more than €1 billion in damages in response to Vladimir Putin’s invasion of Ukraine. No invasion, Shell continues normal business. 

[john donson]

can russia not just use the infrastructure left behind?

[Jingthing]

First Russia should withdraw, return all stolen children, and pay reparations.

Crimea river Russ.

Edited October 17 by Jingthing

[NativeBob]

Shell had mega projects in oil production. I wonder how and who will compensate those losses? 

[RuamRudy]

Shell previously owned over 50% of SEIC following its asset swap with Marathon but the Russian government forced them and the other partners to hand over 50% plus 1 share to Gazprom. What they are whining about is very much ill gotten gains. 

[still kicking]

17 hours ago, SAFETY FIRST said:

I thought Shell was a Dutch company. 

 

Do you mean BP? 

 

Traded asLSE: SHEL · Euronext Amsterdam: SHELL · FTSE 100 component · AEX component

 

FoundedApril 1907 (as Royal Dutch Shell) · 20 July 2005 in Shell Centre, London (current entity)

 

FoundersHenri Deterding · Marcus Samuel · Samuel Samuel

HeadquartersShell Centre · London, England, UK

Key peopleAndrew Mackenzie (chair­person) · Wael Sawan (CEO)

Number of employees90,000 (2023)

FormerlyForthdeal Limited (2002–2004) · Royal Dutch Shell plc (2004–2022)

 

Company typePublic

[Jingthing]

To Putin and Russia, that famous Lily Allen song comes to mind!