European largest oil company, Shell has said it would no longer stop purchase of Russian Crude oil to feed its refineries, rescinding earlier decision taken over Russia Ukraine war.
Shell rescinded the decision on Saturday in a statement cited and reported by New York Times.
Shell had on Monday, according to Financial Times said the company was pulling out of operations in Russia.
Shell in the new statement described the decision to purchase Russian Crude oil as a difficult decision taken to avoid disruptions to market supply.
Many countries in the world are currently experiencing fuel scarcity hiked by Russia Ukraine war.
“Without an uninterrupted supply of crude oil to refineries, the energy industry cannot assure continued provision of essential products to people across Europe in the weeks ahead.”
Russia is one of the world’s largest oil exporters, and many refineries, especially in Europe, are probably configured for processing some Russian crude. “Cargoes from alternative sources would not have arrived in time” to avoid interruptions in supply, the company added as captured by the New York Times.
The media report reads further:
“Shell, Europe’s largest oil company, said Saturday that it would probably continue to buy Russian crude oil to feed into its refineries and supply customers with gasoline and diesel but would donate any profits to a fund dedicated to “the people of Ukraine.
“The imbroglio shows the difficulty that oil companies and governments are having in calibrating their response to the invasion of Ukraine. Governments have been trying to impose sanctions on the Russian economy without disrupting flows of oil and natural gas. The idea is to punish Russia without inflicting pain on consumers in Europe, which is highly dependent on both Russian natural gas and oil, and the United States. Achieving these goals will probably prove difficult. Already, most buyers are shunning Russian oil, which is selling at a substantial discount.
“Those moves, which will take time to be fully carried out, may not be sufficient to satisfy public opinion. Shell said that it would buy alternatives to Russian crude when possible, but completely dropping Russian oil could not happen overnight.
“It ended its statement on Saturday by saying it would work with aid groups and humanitarian organizations to determine where best to put the money from its Russian oil fund “to alleviate the terrible consequences that this war is having on the people of Ukraine.”