• Western countries have threatened to impose crippling sanctions on Moscow 

  • US, UK and EU are drawing up plans to hit Russian gas projects with curbs

By FRANCESCA WASHTELL FOR THE DAILY MAIL

PUBLISHED: | UPDATED: 

Shell and BP could find it ‘impossible’ to work in Russia if it invades Ukraine, experts have warned.

Western countries have threatened to impose crippling sanctions on Moscow after it began building up troops on the Ukrainian border.

 Analysts said soaring oil prices could cushion the blow for Shell, BP and other firms affected by the rules.

Shell works in Russia with energy giant Gazprom and BP with state-backed oil firm Rosneft, in which the British group owns an almost 20 per cent stake.

Shell became a ‘strategic partner’ of Gazprom when it first signed on to develop the Nord Stream 2 pipeline.

The energy giant is working on Sakhalin-2, a huge oil and gas project in the Sea of Okhotsk off Siberia with Gazprom, Mitsui and Mitsubishi.

Victoria Scholar, head of investment at Interactive Investor, said: ‘Sanctions have the potential to pose a notable threat to the oil giants operating in Russia, including BP and Shell.’

Shell declined to comment.

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