This is why Shell is buying discounted oil from Russia

Defying sanctions, Shell is buying cheap or discounted oil from Russia which is at war with Ukraine and is getting banned across the Western world.

In a statement late Saturday Shell said it had been in “intense talks with governments and continue to follow their guidance around this issue of security of supply.”

“We 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 statement says.

Of course, Shell says it is appalled by the war in Ukraine and have already made clear their intention to exit joint ventures with Gazprom – which is majority-owned by the Russian government – and
related entities, “as well as intending to end our involvement with a significant project to
pipe gas from Russia to Europe.”

“We have acted throughout in accordance with what we have understood was the intent to allow energy flows from Russia for the time being in order to provide security of energy supply.” it adds.

Shell says it made a difficult decision to purchase a cargo of Russian crude oil. “Our refi-
neries produce petrol and diesel as well as other products that people rely on every day.”

The excuse for Shell is without an uninterrupted supply of crude oil to refineries, the energy industry,
cannot assure continued provision of essential products to people across Europe over the
weeks ahead.

Well, what makes good political decisions for the rulers in Europe, is now a bad business decision for Shell. Thus, the company is breaking away from orders from the powers that be.

Good business by Shell

It is making a sound business decision, according to the statement which adds, “Cargoes from alternative sources would not have arrived in time to avoid disruptions to market supply.”

Very interesting indeed, don’t you think? So there are companies out there that would not commit to the suicidal moves by their governments but will continue to make sound business decisions while waiting for the outcome of the war in Ukraine.

“We didn’t take this decision lightly and we understand the strength of feeling around it. 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,” Shell says.

Shell adds that it has taken this stance while listening to the advice of governments and politicians and welcome any direction or insights from governments and policymakers while it tries to keep Europe moving and in business.

To calm the warmongering leaders, Shell says it will commit the proceeds of this transaction with Russia to a dedicated fund.

“We will commit profits from the limited amount of Russian oil we have to purchase to a dedicated fund. We will work wi 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.”

Photo shows Gazprom HQ in Russia