Shell's Uncertain Outcome in €1.5 Billion Russian Claim
LONDON (Reuters) - The outcome of a Russian prosecutor asking Shell to pay Gazprom 1.5 billion euros ($1.62 billion) for alleged unpaid gas deliveries in 2022 is "uncertain", Shell said in its annual report published on Tuesday.
Shell had several projects in Russia before Moscow sent its army into Ukraine in February 2022 in what it called a special military operation. The company had a stake in a liquefied natural gas producing plant on the Pacific island of Sakhalin led by Kremlin-controlled Gazprom.
Russia consolidated its control over the plant in response to sanctions imposed by the West, and Shell left Russia. That meant it ended its involvement with the Sakhalin plant, as well as other activities such as its investments in the Nord Stream 2 pipeline project.
The Russian prosecutor filed a claim in October and, in January, Shell filed a postponement notice, it said. A new court hearing is scheduled for April 14, Shell added.
"At this time, it is not possible to reliably estimate the magnitude and timing of any possible obligations or payments in respect of the matters above or whether any payments will be due," Shell said in the annual report.
"There remains a high degree of uncertainty regarding the ultimate outcomes, as well as the potential effect on future operations, earnings, cash flows and Shell's financial condition."
($1 = 0.9255 euros)
(Reporting by Shadia Nasralla; Editing by Susan Fenton)
