Shell announced the record first-quarter profits on Thursday, saying it had seen “strong results in volatile times.” The results come at a time when calls for a windfall tax in the UK are getting increasingly louder amid the cost of living crisis which is pushing many families to breaking point.
The energy sector has been reaping the benefits of soaring energy prices in recent months, pushed up further again by the Russia-Ukraine War and rocketing demand as economies begin to recover from the Covid-19 pandemic.
“The war in Ukraine is first and foremost a human tragedy, but it has also caused significant disruption to global energy markets and has shown that secure, reliable and affordable energy simply cannot be taken for granted,” said Shell CEO Ben van Beurden.
“The impacts of this uncertainty and the higher cost that comes with it are being felt far and wide. We have been engaging with governments, our customers and suppliers to work through the challenging implications and provide support and solutions where we can.”
“We are acutely aware that our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel — despite being made with security of supplies at the forefront of our thinking — was not the right one and we are sorry,” said Shell CEO Ben van Beurden.
“We will work with aid partners and humanitarian agencies over the coming days and weeks to determine where the monies from this fund are best placed to alleviate the terrible consequences that this war is having on the people of Ukraine.”
Shell said it will now immediately cease all spot purchases of Russian crude oil and that it will not renew contract terms. The oil giant will gradually withdraw all hydrocarbons, including crude, petroleum products, gas, and liquified natural gas.
Shell has also said it will shut its service stations in Russia, as well as its aviation fuels and lubricants operations. At present, Russian oil constitutes 8% of Shell’s working supplies.
In the 12 days since Russia began its unprovoked invasion of Ukraine, more than 2 million Ukrainians have fled their country. This is according to a tracker from the UN refugee agency.
