Due to US sanctions, Shell is terminating its partnership with Rosneft in the CPC oil pipeline

Shell Plc intends to exit its partnership with Russia's PJSC Rosneft, with which it jointly owns a stake in a pipeline that transports oil from Kazakhstan. This was reported by Bloomberg.

If this process is successfully completed, Shell will remain among the shareholders of the Caspian Pipeline Consortium (CPC), but will no longer share its stake with the sanctioned Russian company.

Russian dictator Vladimir Putin this week, he allowed two companies to take legal actions that could alter or terminate their property rights in a joint Caspian venture.

Back in March 2022, Shell announced its intention to phase out Russian energy resources in response to the full-scale invasion of Ukraine.

The Russian authorities did not explain the grounds for this permit, which led to speculation about possible changes in the ownership structure of the Caspian Pipeline Consortium, a key route for oil exports from Kazakhstan.

The CPC transports Kazakh oil to the Black Sea coast through Russian territory. Its shareholders include leading international oil companies, as well as Russian Rosneft and PJSC Lukoil, which are under US sanctions. A joint venture between Rosneft and Shell controls 7.4% of the consortium's shares.

According to the information on the company's official website, Shell's total share in the consortium is 7.4%. Of this, 3.75% is attributable to the joint venture with Rosneft, 1.75% to Shell's direct participation, and another 2% to its subsidiary BG Overseas Holding Ltd.

Recently, the CPC infrastructure has been repeatedly attacked by drones, which has created threats to the uninterrupted operation of the route. The latest attack closed one of the three CPC berths, which are key to the facility's operation.

Ukraine has not officially claimed responsibility for these attacks. At the same time, the Ministry of Foreign Affairs of Kazakhstan stated that it maintains diplomatic contacts with the Ukrainian side regarding this matter.

• On September 4, it became known that JSC "Ukrnafta" finally completed the transaction with Shell Overseas Investments BV to acquire a 51% stake in Alliance Holding LLC, which owns a network of 118 gas stations under the Shell brand in Ukraine.