SHEL Stock Continues to Fall as Shell Ends Partnership With Russia’s Gazprom

For major oil and gas conglomerate Shell (NYSE:SHEL), the ongoing Russian invasion of Ukraine has huge financial impacts. Today, SHEL stock is down nearly 4% as the market continues to price in geopolitical headwinds.

The Royal Dutch Shell (RDS.A, RDS.B) logo on a gas station in Iceland.
Source: JuliusKielaitis /

Of course, the broader stock market is seeing similar pressure today. News that Russia is not backing down has many concerned about how far this conflict could spread. Broadly, investors appear to be taking a bearish view of what this invasion means for global trade.

Why? Part of the reason is that Russia is a key global energy player. Investors have been watching what sanctions could mean for inflation, and for energy supplies around the world. For companies that do business with Russia, these concerns ring even louder.

One such company investors have on their radar today is Shell. Let’s dive into what’s behind this stock’s significant declines.

SHEL Stock Plunges on News Company Is Exiting Russia

Today, Shell announced that it would be ending its partnership with Gazprom, Russia’s state-owned energy company.

This move means Shell will be divesting its stakes in key oil and gas projects across Russia. According to the company, these assets are worth as much as $3 billion.

The problem is, the company may have a difficult time finding a bidder for these assets, resulting in significant write-downs. As a result, investors are calculating how bad the impact of this withdrawal from Russia will be.

“Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia,” Shell CEO Ben van Beurden said. “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.”

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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