Wintershall Dea is Discussing its Exit from the Joint Venture in Russia with Gazprom
The head of the company, Mario Meren, did not comment on whether it is possible to nationalize Wintershall Dea’s shares in Russian enterprises
Germany’s Wintershall Dea is in negotiations with Gazprom regarding its exit from joint ventures in Russia. This was stated by the head of the company, Mario Meren, during an online conference.
“It is impossible to predict when an exit from [Russian] assets will be possible. And I can confirm that, due to contractual obligations, we are in discussions with our joint venture partners in Russia on how to deal with this situation,” he said. answering the question whether the company is discussing with Gazprom the sale of its shares in Russian assets.
Meren did not comment on whether nationalization of Wintershall Dea’s shares in Russian enterprises is possible. “Whether they [the shares] will be nationalized or not is a question for the Russian government,” the head of the company emphasized.
Wintershall Dea CFO Paul Smith, in turn, noted that the company estimates losses from participation in Russian assets since February 2022, including investments in Nord Stream and Nord Stream 2, at approximately €7.5 billion.
About the exit of Wintershall Dea from Russia
On January 17, Wintershall Dea announced its intention to leave Russia. Wintershall will divest from assets in the Russian Federation in accordance with existing legal obligations and record a loss of €5.3 billion from the deconsolidation of joint ventures in Russia.
The head of the company, Mario Meren, reported that Wintershall Dea is considering all measures to minimize the damage from leaving Russia, including filing claims against the Russian authorities. He also stated that the company is studying available options for exiting Russian assets and removing personnel from the Russian Federation. At the same time, Meren found it difficult to name specific dates for a complete exit from Russia, noting that “this will be a long process.”
However, the company said it plans to complete the legal separation of its international business from its joint ventures with Russia by mid-2024.
Wintershall Dea was one of the financial investors of Nord Stream 2, acts as a shareholder of the operator of the Nord Stream gas pipeline (with a share of 15.5%), owns 25.01% in a joint project with Gazprom (74.99%) Achim Development, together with Gazprom and the Austrian OMV, manages the Severneftegazprom joint venture, which is developing the Yuzhno-Russkoye field.
