Shell defends decision to buy discounted oil from Russia

Oil main Shell has sought to defend its decision to buy a heavily-discounted consignment of oil from Russia, saying it will commit the income to a fund devoted to humanitarian assist for Ukraine.

On Friday, Shell bought 100,000 metric tons of flagship Urals crude from Russia. It was reportedly purchased at a report low cost, with many companies shunning Russian oil due to Moscow's unprovoked invasion of its neighbor. The buy didn’t violate any Western sanctions.

Shell stated in a assertion late Saturday that it had been in "intense talks with governments and continue to follow their guidance around this issue of security of supply, and are acutely aware we have to navigate this dilemma with the utmost care."

"We didn't take this decision lightly and we understand the strength of feeling around it," the assertion learn.

The firm has confronted heavy criticism from Ukraine's Foreign Minister Dmytro Kuleba, who desires firms to reduce all enterprise ties with Russia.

"One question to Shell: doesn't Russian oil smell Ukrainian blood for you?" Kuleba stated in a tweet Saturday.

Speaking to CNBC Monday, Kuleba launched a scathing assault on companies nonetheless doing enterprise with Russia, saying that some main oil firms may discover themselves on the improper facet of historical past.

"The world will judge them accordingly. And history will judge them accordingly," he instructed CNBC's Hadley Gamble.

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Shell stated earlier this week that it meant to exit its joint ventures with Russian gasoline big Gazprom and its associated entities.

Meanwhile, rival BP introduced Sunday final week that it was offloading its 19.75% stake in Rosneft, a Russian-controlled oil firm, probably hitting the British oil main with a expensive $25 billion cost.

In its new assertion, Shell stated Saturday that the corporate welcomed "any direction or insights" from governments or policymakers.

"We will continue to choose alternatives to Russian oil wherever possible, but this cannot happen overnight because of how significant Russia is to global supply," the corporate stated within the assertion.

—Jessica Bursztynsky contributed to this text.

Watch CNBC's full interview with Ukraine Foreign Minister Dmytro KulebaCapital Connection

primarily based on web site supplies www.cnbc.com

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