…….Shell, ExxonMobil, BP, Glencore, Equinor, others ready to quit Russia
Energy firms, and indeed all other companies that ditch Russia in these ‘trying times’ will be considered pushing their Russian subsidiaries to “deliberate bankruptcy.” Under Russian laws it includes criminal prosecution for top managers.
Quoting Russian Deputy Prime Minister, Andrey Belousov, Upstream reported last weekend that deliberate bankruptcies, under the Russian law, resulting in damages of over 1.5 million Russian rubles ($13,300 as of March 4) carries a criminal liability.
The companies leaving Russia will get fast-track bankruptcy protection, or they transfer their stakes to local managers until they return to Russia, according to a Reuter’s summary of Belousov’s latest comments.
As at yesterday, many international companies, including oil majors, are noted to have signified their intention to quit Russian projects and companies following the Russian aggression in Ukraine.
British Petroleum (BP) was the first to announce it would divest from Russia. In just a few days, many other Western oil majors followed suit. Yesterday (Sunday), BP said it would divest its 20% stake in Russian giant Rosneft.
Chief executive officer of BP, Mr. Bernard Looney had announced his resignation from the board of Rosneft “with immediate effect”.
The other Rosneft director nominated by BP, former BP CEO Bob Dudley, also resigned from the board, Oilprice.com reported yesterday.
Dutch energy giant, Shell, has signified its intension to exit Russia. Shell’s stakes in the warring country include its equity partnerships with Gazprom entities, including the Nord Stream 2 gas pipeline project, its 27.5% stake in the Sakhalin-II LNG facility, its 50% stake in the Salym Petroleum Development, and the Gydan energy venture, the report said.
Also, Norway’s Equinor is recorded as quitting new investments into Russia and proceeding to taking steps towards exiting its Russian joint ventures.
On its part, ExxonMobil has said it is discontinuing operations at Sakhalin-1 and will make no new investments in Russia, citing “Russia’s military action,” in Ukraine.
On the other hand, Glencore said it is reviewing all business activities in Russia, including stakes in En+ and Rosneft. The organisation said it has no operational footprint in Russia, while its trading exposure is not material for Glencore.
Trafigura is reported to have immediately frozen its investments in Russia, and is currently reviewing the options in respect of its passive shareholding in Vostok Oil in which it has no operational or managerial input.
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