Western companies were quick to announce their full departures from Russia or a suspension of operations in the country – and now the bills are starting to come in.
Among the first to pull out of what is fast becoming a pariah state were the UK oil majors BP and Shell and, in terms of the financial hits being taken in the retreat from Moscow, they are facing the most pain.
Its interests there were substantial and included its 27.5% stake in Sakhalin-2, the giant offshore gas field in Russia’s far east that supplies about 4% of the world’s liquefied natural gas.
These ventures were previously valued in Shell’s accounts at $3bn. Now, though, the company has concluded the cost will be higher of exiting these investments and other actions including stopping buying Russian crude, closing its petrol stations in the country and closing its aviation fuels and lubricants businesses in Russia.