After BP, Shell also leaves the collaborations with the Russian Gazprom

Shell will cease all operations in Russia, including a large liquefied natural gas plant, it said Monday, marking the last major Western energy company to leave the oil-rich country after Moscow’s invasion of Ukraine.

The decision comes a day after BP relinquished its stake in Russian oil giant Rosneft in a move that could cost the British company more than $ 25 billion. Norway’s Equinor also plans to leave Russia.

Shell said in a statement that it would abandon its iconic Sakhalin 2 LNG plant, in which it owns a 27.5% stake and is 50% owned and operated by Russian gas giant Gazprom. Sakhalin 2, off the northeast coast of Russia, is huge, producing about 11.5 million tons of LNG a year, which is exported to major markets, including China and Japan.

For Shell, the world’s largest LNG trader, quitting the project hurts its plans to supply gas to fast-growing markets in the coming decades.

Shell said the exit from Russia would not affect its plans to switch to low-carbon, renewable energy.

The company also plans to end its stake in the Nord Stream 2 Baltic gas pipeline connecting Russia to Germany, which it helped finance as part of a consortium of companies. Germany stopped the project last week.

“We are deeply saddened by the loss of human life in Ukraine, which we mourn over an absurd military offensive that threatens European security,” said Ben van Beurden, Shell’s chief executive officer.

Shell will also leave Salym Petroleum Development, another joint venture with Gazprom.

Together, Salym and Sakhalin 2 contributed $ 700 million to Shell’s net profit in 2021.