Wintershall Dea Will Exit Russia
The company explained its decision by the measures of the Russian government, which banned Gazprom from buying gas from a joint venture with Wintershall below a certain limit. The total loss from leaving the German company was estimated at € 5.3 billion
The German oil and gas company Wintershall Dea, following the decision of the Russian government to introduce cap prices for gas, above which Gazprom is prohibited from buying it from joint ventures with Wintershall Dea, announced its decision to leave the Russian market.
“The Supervisory Board of Wintershall Dea approved the board’s decision in principle to leave Russia. As a consequence, Wintershall Dea intends to leave Russia completely in due course, in compliance with all applicable laws and regulations.
The company emphasized that the fair value of shares in Russian joint ventures is “significantly affected by external interference”, such as President Vladimir Putin’s decree prohibiting Gazprom from fulfilling obligations to foreign parties from unfriendly countries to pay for the supply of combustible natural gas and gas condensate, mined at a number of Russian fields.
In particular, a government-approved document introduces a ceiling price for natural gas produced at the sites of the Yuzhno-Russkoye gas field: before entering the system of main gas pipeline transport – 2390 rubles. for 1 thousand cubic meters m, after – 5464 per 1 thousand cubic meters. m.
The total loss from leaving Russia in Wintershall Dea was estimated at €5.3 billion.
Wintershall Dea is the largest oil and gas company in Europe, owned by the petrochemical concern BASF (67%) and LetterOne (33%), founded by Mikhail Fridman, German Khan and Alexei Kuzmichev. It produces gas and oil in Norway, Germany, as well as in Russia together with Gazprom, operates in Latin America, Egypt and the Middle East.
Wintershall Dea in Russia, together with Gazprom, is involved in the development of the Yuzhno-Russkoye field (joint ventures of Severneftegazprom and Gazprom YURGM Trading), as well as sections 1A, 4A, 5A of the Achimov deposits of the Urengoy oil and gas condensate field (JV Achimgaz and Achim Development). In addition, the company was one of the investors in the Nord Stream 2 project (owns 15.5%), along with British Shell, Austrian OMV, French Engie, German Uniper, who financed half of its cost (the project was estimated at $11 billion — Wintershall Dea invested €730 million).
In July, the company announced its intention to continue managing its assets in Russia. “Leaving Russia would be a great gift for the government,” Mario Mehren, CEO of Wintershall Dea, said at the time.
