Shell (SHEL.L) is in talks with a consortium of Indian energy companies to sell its stake in a major liquefied natural gas plant in Russia, three sources told, highlighting India’s willingness to step into the space left by Western companies following Moscow’s invasion of Ukraine.
The world’s third-largest oil importer and consumer has already stepped up purchases of Russian supplies since the conflict began in February, taking advantage of big discounts at a time when global oil prices have surged.
The sources said Shell has recently entered into talks with a group of Indian companies, including ONGC Videsh and Gail (GAIL.NS), over its 27.5% stake in the Sakhalin-2 LNG plant on Russia’s eastern flank.
Shell declined to comment. ONGC, Gail and other state-run Indian companies did not respond to request for comment.
The talks follow the British company’s plans to exit all its Russian operations, amid an exodus of Western companies from the country in response to sanctions over the Ukraine conflict. India has not explicitly condemned Moscow’s actions there.
India has snapped up cheap Russian oil, taking its share of Russian oil exports to around 10% from zero since the start of this year, according to the International Energy Agency.
The Indian government has also asked state-run energy companies to look into buying Russian assets from European oil majors including BP, reported last month.
India has shrugged off criticism from the West and defended its Russian energy purchases, saying they represent a fraction of the country’s overall needs and a sudden halt to imports would push up prices for consumers.