Scan to Download ios&Android APP

Shell (SHEL) apologises, backs out of Russian oil deal

12:58, 8 March 2022

Share this article

Have a confidential tip for our reporters?

Shell symbol
Shell issued an apology after public outcry – Photo: Shutterstock

Shell PLC apologised Tuesday for purchasing 100,000 metric tonnes of Russian oil on consignment at a steep discount, saying it will halt buying oil and gas from the country.

“As an immediate first step, the company will stop all spot purchases of Russian crude oil. It will also shut its service stations, aviation fuels and lubricants operations in Russia,” Shell said in a statement.

As reported Friday, the London, UK-based company purchased the Ural crude without bypassing any Western sanctions placed on Russia for invading neighbouring Ukraine.

Bad PR

Since then, Shell has faced massive criticism for the purchase, both by foreign leaders and social media users urging the company to cancel the sale.

In an interview with CNBC last week Ukraine’s Foreign Minister Dmytro Kuleba said oil companies purchasing Russian oil could find themselves portrayed in a negative light.

“The world will judge them accordingly. And history will judge them accordingly,” he said.

Shell reacts

Shell said it was “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.”

Shell stock was trading up more than 4% on Tuesday morning at $51.56 per share at 8 am EDT (UTC-5).

Read more:

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 400.000+ traders worldwide that chose to trade with

1. Create & verify your account

2. Make your first deposit

3. You’re all set. Start trading