Shell plc announced that it will dissolve the joint‑venture it shares with Russia’s Rosneft that holds its stake in the Caspian Pipeline Consortium (CPC). The move does not mean Shell will exit the CPC entirely; it will simply remove Rosneft’s participation in the vehicle that carries Shell’s share of the pipeline’s ownership.
Shell’s overall stake in the CPC is about 7.4 percent, held through three entities. The Rosneft‑Shell Caspian Ventures Limited, which owns 7.5 percent of the CPC, is only half‑owned by Shell, giving Shell roughly 3.7 percent of the consortium through that vehicle. By dissolving the joint‑venture, Shell keeps its total CPC interest while eliminating the Russian partner’s role.
The decision is part of Shell’s long‑term strategy to reduce exposure to Russian‑controlled assets amid sanctions and to simplify its pipeline portfolio. A decree issued by President Vladimir Putin on December 8 2025 cleared the way for transactions involving Rosneft and Shell, allowing the joint‑venture to be restructured without violating sanctions. The move also frees capital that Shell can deploy to higher‑margin projects in its Integrated Gas and Upstream segments.
The CPC pipeline has faced operational disruptions from Ukrainian drone attacks, which have temporarily halted flow and damaged infrastructure. By removing Rosneft from the joint‑venture, Shell mitigates the political and operational risks associated with the pipeline’s Russian ownership while maintaining its overall stake in the asset.
Shell’s Q3 2025 earnings, reported on October 30 2025, showed adjusted earnings of $5.4 billion and $12.2 billion in cash flow from operations. Management highlighted the importance of simplifying the asset base and focusing on core operations. CEO Wael Sawan emphasized that the JV dissolution aligns with Shell’s broader Russia exit strategy and supports the company’s long‑term growth objectives.
No market‑reaction data were available in the fact‑check sources, but the announcement signals Shell’s commitment to risk management and strategic focus in a volatile geopolitical environment.
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