Shell backs out of $410M Ukraine MOU

Shell has decided not to proceed with the recently signed memorandum of understanding for exclusive negotiations with Regal Petroleum and a potential $410 million deal regarding Ukraine assets, Shell said in a statement.

"Shell recently signed a memorandum of understanding for exclusive negotiations with Regal Petroleum plc regarding Ukraine assets. The MOU with Regal was agreed with the previous management team."

Shell did not expect the management change at Regal on Nov. 22.

"We see from the new management's comments that they may have changed their thinking on this transaction. Regal have indicated that they would like to review options. Therefore we have decided not to proceed with the MOU with Regal. In light of the publicity surrounding the MOU Shell will make public its decision," the statement said.