The decision comes days after rival BP abandoned its stake in Russian oil giant Rosneft in a move that could cost the British company over $25 billion. Norway’s Equinor also plans to leave Russia.

In a statement Shell said it will quit the flagship Sakhalin 2 LNG plant in which it holds a 27.5% stake, and which is 50% owned and operated by Russian gas giant Gazprom.

Shell said the decision to exit Russian joint ventures will lead to impairments. Shell had around $3 billion in non-current assets in these ventures in Russia at the end of 2021, it said.

“We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security,” Shell’s chief executive Ben van Beurden said.

Rival BP’s chief executive Bernard Looney called an urgent meeting with his leadership team on Thursday, just hours after the first Russian bombs fell on Ukrainian capital Kyiv last week, two BP sources told Reuters.

During that previously unreported meeting, Looney made it clear the company’s investment in Rosneft had become untenable, the sources said.

“There was only one decision we could make,” one of the BP insiders said. “The exit was the only viable way.”

Looney held two more board meetings at the weekend, after which board members voted to immediately exit the Rosneft stake, the sources said.

Looney also spoke to British Business Secretary Kwasi Kwarteng on Friday, when Kwarteng expressed his concern about BP’s interests in Russia. Kwarteng welcomed BP’s decision to exit on Twitter on Sunday.

Kwarteng also supported Shell’s decision, tweeting: “Shell have made the right call to divest from Russia.”

The Sakhalin 2 project, located off Russia’s northeastern coast, produces around 11.5 million tonnes of LNG per year, which is exported to major markets including China and Japan.

Shell said the Russia exit will not affect its plans to switch to low-carbon and renewables energy.

The company also plans to end its involvement in the Nord Stream 2 Baltic gas pipeline linking Russia to Germany, which it helped finance as a part of a consortium of companies. Germany last week halted the project.

Shell will also exit the Salym Petroleum Development, another joint venture with Gazprom. Together, Salym and Sakhalin 2 contributed $700m to Shell’s net earnings in 2021.