On Tuesday, the Shell company announced that it will be ceasing all purchases of Russian crude oil and shifting its supply chain, with no intention of renewing its contracts with Russia.
The company added that it will be shuttering its Russia-based service stations.
The decision came as the U.S. national average price for gasoline hit $4.173 per gallon, a new record.
“We will do this as fast as possible, but the physical location and availability of alternatives mean this could take weeks to complete and will lead to reduced throughput at some of our refineries,” Shell said in a statement.
Shell CEO Ben Van Beurden also apologized for the company’s purchase of a quantity of Russian crude last week.
“We are acutely aware that our decision… despite being made with security of supplies at the forefront of our thinking — was not the right one and we are sorry,” he said. The company now says it intends to donate the profits from all its remaining stocks of Russian oil to an aid fund assisting the Ukrainian people.
Also on Tuesday, CNN reported that several members of the U.S. administration are in favor of entirely banning imports of Russian gas and oil. On Monday, the Kremlin threatened to cut supplies of natural gas to Germany in response to a German decision to end Russia’s Nord Stream 2 pipeline project. Russia warned that oil prices could hit $300 a barrel if the West bans Russian oil.