Russia’s General Prosecutor’s office has filed a lawsuit seeking more than €1 billion ($1.09 billion) in damages from Shell, following the energy giant's exit from the Russian market. The legal action, reported by RIA news agency, was filed in the Moscow Arbitration Court and targets multiple Shell subsidiaries.
The lawsuit follows Shell’s decision to withdraw from Russia in 2022, after the outbreak of the conflict in Ukraine. Shell was a significant player in Russia’s energy sector, with holdings that included a stake in the Sakhalin-2 liquefied natural gas (LNG) plant. The plant is now under the control of state-owned Gazprom, after Russia consolidated its ownership in response to Western sanctions.
The legal claim involves several Shell entities, including Shell Energy Europe Limited and Shell International Exploration & Production B.V., among others. The court has scheduled a hearing for December 11 to address the case. So far, Shell has not issued an official comment regarding the lawsuit.
Background and Context
Shell had been a key partner in the Sakhalin-2 project, which is one of the world’s largest LNG operations. However, after Russia’s invasion of Ukraine, the company decided to exit the market as part of a broader withdrawal by Western firms. Since then, Moscow has taken over assets previously held by foreign companies as a response to the sanctions imposed by the West.
The legal action by Russia is part of an ongoing effort to seek compensation from companies that left the country after the conflict began. Shell is among a number of global firms that ceased operations in Russia, resulting in legal and financial disputes over assets and investments.
The outcome of the lawsuit could have broader implications for other companies that exited Russia, as the country continues to seek reparations for the economic impact caused by the departure of foreign businesses.
