• The oil giant estimates that selling its Russian assets could result in a loss of up to $5bn (£3.8bn).
• Russia is one of the biggest producers of oil in the world.
• In exchange for leaving the Russian market, Shell will end its joint partnerships with Gazprom.

Oil tycoon Shell has acknowledged that selling its Russian assets may result in a loss of up to $5 billion (£3.8 billion), which is part of its intentions to leave the nation.

Although the company has promised to stop buying oil, any agreements made prior to the invasion of Ukraine will be honoured.

In exchange for leaving the Russian market, Shell will have to end its joint partnerships with Gazprom.

When Shell purchased Russian crude oil at a low cost soon after the conflict started, it drew criticism.

The corporation apologised and promised to stop purchasing oil from Russia in reaction to the outcry.

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The corporation estimated that cutting connections with the nation would cost between $4 billion and $5 billion.

Despite being legally required to accept delivery of the crude purchased under contracts that were signed prior to the invasion, Shell stated that it has not renewed longer-term contracts for Russian oil and will only do so under clear government direction.

The oil company continued by stating how “volatile” the status of the world oil markets remained.

The price of Brent Crude, the international standard for oil prices, was around $100 per barrel early on Thursday, but since the Ukraine conflict, it has surged to new highs.

Russia is one of the biggest producers of oil in the world, and the country has been worried about supply disruptions as a result of the fighting.

Despite receiving very little of its oil from Russia, the UK has been impacted by the general increase in prices, which has led to record-high prices for gasoline and diesel.

Shell earlier said that as part of its pullout plans, it will sell off a 27.5 percent stake in a Russian LNG facility, a 50 percent investment in an oilfield project in Siberia, and a joint venture in the energy sector.

Additionally, it will stop participating in the Nord Stream 2 pipeline project between Germany and Russia, which Berlin ministers have suspended.

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