A Double Ouch For Gazprom: Shell, UEFA End Deals With Russian Energy Giant

Gazprom OGZPY, the Russian-state owned energy giant which is also the world’s largest publicly-traded natural gas company, received a one-two punch Monday with Shell plc SHEL terminating its development partnership and UEFA Champions League ending its sponsorship agreement.

Shell Signs Off: Shell’s board of directors announced its decision to close its joint ventures with the Russian company, including its 27.5% stake in the Sakhalin-II liquefied natural gas facility, its 50% stake in the Salym Petroleum Development and the Gydan energy venture. Shell’s board of directors also ended the company’s involvement in the Nord Stream 2 pipeline project.

Shell CEO Ben van Beurden cited the Russian invasion of Ukraine as the foundation of the decision, adding the company could not maintain a business-as-usual approach in the wake of the ongoing military conflict.

“Our decision to exit is one we take with conviction,” he said. “We cannot – and we will not – stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia.”

“In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions,” van Beurden added, noting Shell will partner with humanitarian efforts to aid the Ukrainian relief effort.

Related Link: Most Cruise Lines Say 'Nyet' To Visiting Russian Ports

Red Card From UEFA: Separately, UEFA tore up its sponsorship partnership with Gazprom to voice its protest over the Ukrainian invasion.

“UEFA has today decided to end its partnership with Gazprom across all competitions,” said the organization today on its website. “The decision is effective immediately and covers all existing agreements including the UEFA Champions League, UEFA national team competitions and UEFA EURO 2024.”

The sponsorship had been in place since 2012 and is reportedly worth approximately $44.8 million per season.

UEFA has already suspended Russia from participating in its games and moved the 2022 Champions League Final scheduled for May 28 from St. Petersburg to Saint-Denis, a suburb of Paris.

Photo: Maxence / Flickr Creative Commons