Ukraine offers Shell to allocate part of the proceeds from the sale of its business in Russia to the war-affected areas
It is a joint venture for the development of oil and gas fields in the Far East, Sakhalin-2, in which Shell holds a 27.5% stake.
Oil and gas giant Shell is to share a billion dollars with victims of Russian aggression in Ukraine. These funds are unexpected revenues that the company may receive from the potential sale of its assets in Russia.
Source. This is stated in a letter sent by the President's economic advisor Oleh Ustenko to the head of the company Wael Savan, the details of which were reviewed by Politico.
Shell can receive these revenues if Russia buys out its share of a joint venture to develop mineral reserves in Siberia.
"This is blood money," Ustenko writes, "and we call on Shell to use the proceeds of the sale or dividends to help the victims of the war, the war that was paid for by these assets.
This refers to the Sakhalin-2 joint project for the development of oil and gas fields in the Far East, in which Shell holds a 27.5% stake.
After Russia's invasion of Ukraine, Shell announced its withdrawal from the Russian market and the write-down of $5 billion worth of assets and investments in Russia.
Shell declined to comment, citing the fact that it is not currently doing business in Russia or in any negotiations to sell its stake in the Sakhalin-2 project, so it cannot speak to what might happen to the proceeds of such a sale.
"We understand that now Shell may have no choice but to accept our offer," Ustenko admits in the letter, recalling the moral responsibility that he believes should push the company to transfer the money to Ukraine.
Meanwhile, according to the NGO Global Witness, $1 billion is only about a tenth of the total amount needed to restore Ukraine's energy infrastructure, which was damaged by Russian strikes.
Background. As a reminder, Lithuanian Ignitis has called on energy companies to donate 10% of their excess profits to help Ukraine.
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