Energy giant Shell has stated that disposing its Russian assets will cost them up to $5 billion (£3.8 billion) as part of plans to exit the country.

The company has stated that it will no longer buy oil, but that contracts inked prior to the invasion of Ukraine will be honored.

Shell’s exit from Russia comes with a price: the termination of joint ventures with Gazprom.

When Shell bought Russian crude oil at a low price immediately after the conflict began, it was chastised.

In reaction to the outrage, the corporation issued an apology and stated that it would no again purchase oil from Russia.

The corporation estimated that severing connections with the country would cost between $4 billion and $5 billion.

“Shell has not renewed longer-term contracts for Russian oil, and will only do so under explicit government direction, but we are legally obliged to take delivery of crude bought under contracts that were signed before the invasion,” the company said.

The status of the global oil markets remained “volatile,” according to the oil company.

Early on Thursday, Brent Crude, the global standard for oil prices, was trading at around $100 a barrel, but it has since surged to new highs due to the Ukraine conflict.

Oil prices have risen as a result of Russia’s position as one of the world’s top producers of the commodity and fears that supplies may be affected as a result of the conflict.

Despite the fact that the UK imports very little oil from Russia, it has been affected by the worldwide price spike, which has seen petrol and diesel prices reach new highs.

Shell previously stated that it would sell a 27.5 percent investment in a Russian liquefied natural gas facility, a 50 percent stake in a Siberian oilfield project, and an energy joint venture as part of its pullout plans.

It will also withdraw from the Nord Stream 2 pipeline project between Russia and Germany, which has been put on hold by German ministers.

(Adapted from TheGuardian.com)