Wintershall Dea will exit Russia
Published by Sara Simper,
Wintershall Dea intends to fully exit Russia following a principle decision of the Management Board, approved by the Supervisory Board. The company will leave the country in an orderly manner, complying with all applicable legal obligations.
“Continuing to operate in Russia is not tenable”
Wintershall Dea CEO, Mario Mehren says: "Wintershall Dea will end its Russian activities. Continuing to operate in Russia is not tenable. Russia's war of aggression in Ukraine is incompatible with our values and has destroyed co-operation between Russia and Europe."
Mehren continued: “In recent months, limitations imposed by the Russian government on operations of Western companies in the country, and external interferences in our Joint Venture (JV) operations, made it impossible for Wintershall Dea to operate in Russia as before and resulted in an economic expropriation of the JVs in Russia."
Ongoing assessment since the outbreak of war
From the first days of the war, Wintershall Dea made clear its condemnation and took action. The company announced an immediate stop to new projects in Russia, and with Russian partners outside of Russia. Since then, the company has been continuously assessing its existing operations.
Financial flexibility despite €5.3 billion one-off loss
Wintershall Dea deconsolidated its Russian business from its financial reporting in 4Q22. Consequently, the company expects to record a one-off non-cash loss of €5.3 billion. This relates to Wintershall Dea’s Russian JVs, and impairments from Nord Stream AG and the WIGA midstream business. Wintershall Dea has built significant financial flexibility in the last year. Since the start of the war, the company had prudently adjusted its financial framework, excluding Russian activities from planning.
“We are prepared”
“We are prepared for this difficult moment”, says Mario Mehren. “We have been prudently building up financial flexibility and maintained high discipline regarding our spending levels. We are diversifying our portfolio, with an aim of modest future growth of our business outside Russia. And we are investing in decarbonisation solutions – carbon management and hydrogen – that are in demand for the energy transition. We will shape our future as a healthy, resilient, and flexible company.”
Read the article online at: https://www.worldpipelines.com/business-news/18012023/wintershall-dea-will-exit-russia/
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