THE SHELL LEAKS FILES — 31 OCTOBER 2026
SLF-2007-104
The Sakhalin Papers XCIV: The Blending Loophole — Russian Oil in Shell’s Supply Chain After the Apology
By John Donovan — 31 October 2026
On 8 March 2022, Shell apologised for purchasing discounted Russian crude oil and announced its intention to withdraw from Russian hydrocarbons. Yet its trading arrangements continued to permit purchases of certain refined petroleum products containing almost 50% Russian-origin material. Bloomberg exposed the practice in April. Ukraine’s government accused Shell of exploiting an accounting trick. Shell disputed the allegation that it was deliberately purchasing Russian products for blending and resale. On 27 April, Reuters reported that the company had tightened its trading terms to exclude refined products containing any Russian-origin material. The surviving corporate statements, contemporaneous trading reports and official sanctions records reveal what happened — and the important distinction between a contractual loophole, an actual purchase and an unlawful transaction.
Comment from “An Old EP Hand” on the article:
Shell’s latest financial statements reveal a remarkable accounting consequence of the Middle East conflict. While the oil giant reports extraordinary profits, soaring tanker freight rates have triggered billions of dollars in additional shipping-lease liabilities. The figures are non-cash adjustments, not realised losses, but they expose another dimension of Shell’s vulnerability to geopolitical disruption.
By John Donovan — 29 October 2026
By John Donovan — 29 October 2026
