Shell, BP and ExxonMobil Have Done Business in Russia for Decades – Here’s Why They’re Leaving Now
Russia’s invasion of Ukraine has completely changed Western energy companies’ cost-benefit analysis of doing business in Russia.
In response to Russia’s invasion of Ukraine, British energy giant BP announced on Feb. 27, 2022, that it will sell its nearly 20% ownership in Russian state-owned energy giant Rosneft. BP’s rival Shell is also pulling out of all of its operations in Russia, as are U.S. energy giant ExxonMobil and Norway’s state-controlled company, Equinor.
These breakups will not be cheap. BP’s stake in Rosneft is worth US$14 billion. In various projects, Shell has about $3 billion in assets in Russia. ExxonMobil has over 1,000 employees and more than $4 billion in assets there. Pulling out will inflict significant financial hits on all of these companies.