November 23, 2024

Taylor Daily Press

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Moscow acquires Shell joint venture |  Abroad

Moscow acquires Shell joint venture | Abroad

A Russian court has ruled that a partnership in Russia in which Shell owns half a member should come under Moscow’s control. This was reported by the Russian news agency Interfax.

Read all the news about the war in Ukraine in our profile.

It is related to Salym Petroleum Development (SPD), a joint venture between Shell and Gazprom Neft. The latter is the oil branch of the Russian state group Gazprom. Shell and Gazprom Neft each hold a 50 percent stake in the joint venture, which is developing fields in Western Siberia.

Russia’s Kommersant newspaper reported last week that Gazprom Neft had taken steps to bring the joint venture entirely under Russian legal control. Thus, the rights of Shell shareholders had to be suspended. The court is now freezing some of Shell’s rights until the end of December 2023, including voting rights.

A Shell spokesperson said: “We are monitoring the situation and evaluating our legal options.” “We have no further comment at this time.”

Shell announced plans to cease operations in Russia in March when Western sanctions were imposed in response to Russia’s invasion of Ukraine. The oil and gas group had already indicated that it would have to write off billions of its activities in Russia.

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