Shell Flags Uncertain Outcome of $1.6-Billion Russian Court Claim | OilPrice.com
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The outcome of a Russian claim against Shell for alleged unpaid natural gas deliveries is uncertain, the supermajor said on Tuesday, adding that it is not possible to estimate the amounts of any possible payments and obligations.
Shell withdrew from its operations in Russia shortly after the Russian invasion of Ukraine in February 2022.
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In early October 2024, a Russian prosecutor filed a court claim in Moscow against eight Shell group entities, including Shell plc and Shell Energy Europe Limited (SEEL).
The prosecutor seeks, among other things, monetary relief of about $1.62 billion (1.5 billion euros) from SEEL to Gazprom Export for alleged unpaid gas deliveries in 2022, Shell said in its annual report published today. The prosecutor also seeks declarations that Shell illegally abandoned in support of Sakhalin Energy Investment Company.
In Sakhalin, Shell was a minority shareholder in the Sakhalin LNG project before withdrawing from Russia.
Last year, the Russian government decided to sell Shell’s minority stake in the Sakhalin LNG project to state-controlled giant Gazprom for $1 billion, reversing a previous decision to have LNG producer and exporter Novatek have the stake, which Shell abandoned after the invasion of Ukraine.
On January 30, 2025, SEEL filed a written postponement motion in the Moscow court proceedings regarding SEEL’s non-payment of Gazprom Export’s gas invoices and Sakhalin. At a court hearing on February 14, 2025, the judge postponed the proceedings until the next hearing, which is scheduled for April 14, 2025, Shell said.
“At this time, it is not possible to reliably estimate the magnitude and timing of any possible obligations or payments in respect of the matters above or whether any payments will be due,” the supermajor said in its annual report.
“There remains a high degree of uncertainty regarding the ultimate outcomes, as well as the potential effect on future operations, earnings, cash flows and Shell’s financial condition,” it added.
By Charles Kennedy for Oilprice.com
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