International

Wintershall Dea to exit from Russian projects

Published on : 2023-01-18

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 operations, made it impossible for Wintershall Dea to operate in Russia as before and resulted in an economic expropriation of the Joint Ventures 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 €5.3bn one-off loss 

Wintershall Dea deconsolidated its Russian business from its financial reporting in Q4 2022. Consequently, the company expects to record a one-off non-cash loss of €5.3 billion. This relates to Wintershall Dea’s Russian joint ventures, 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.” 

Related Articles

QatarEnergy awards $6bln EPC contracts for Al Shaheen field

Under this, Project Ruya will see the development of more than 550mln barrels of oil within a five-year period with the first oil expected in 2027

Read More

Saudi Arabia mulls additional Aramco stake sale

The Saudi government is mulling a follow-on offering of Saudi Aramco as early as February

Read More

Eni Completes Acquisition of Neptune Energy: Advancing Low-Carbon Energy Solutions

Eni acquisition of Neptune Energy accelerates low-carbon solutions, reinforcing its global presence in natural gas and advancing carbon capture initiatives.

Read More
Wintershall Deaneptune LogoSIEnppipetrojetTransGlobe SCHNEIDER-ELECTRIChempleEgypt gasNorthAlmansooriSKY CTS exxonmobilSchlumbergerhttps://www.shell.com/GascoCPCAlmansoori