German oil company Wintershall Dea will completely abandon Russia. The separation will be orderly and fulfill all legal obligations to vacate the country cordially. The decision was made by the Management Board and approved by the Supervisory Board of the organization.
Non-cooperation
Mario Mehren, CEO of Wintershall Dea, said, “Wintershall Dea will end its activities in Russia. Continuing to operate in Russia is not sustainable. Russia’s war of aggression in Ukraine is incompatible with our values and has destroyed cooperation between Russia and Europe.”
The CEO explained that one of the reasons for this separation was the limitations imposed by the Russian government on all Western companies. These limitations created the impossibility to continue operating in the country and resulted in the economic takeover of the Joint Ventures, which had external interference.
Outbreak of war
The Russian-Ukrainian war has brought quite a few repercussions for all sectors worldwide. Wintershall Dea, from the beginning of the conflict, made clear the measures and conditions of the organization. And it announced the immediate suspension of new projects in Russia and with Russian partners outside the country.
From day one, the firm continuously evaluated all existing operations.
Financial flexibility
As of the last quarter of 2022, Wintershall Dea dismantled its Russian business from its financial reporting. Due to this, they expected a non-cash extraordinary loss of EUR 5.3 billion. This loss is due to the impairment of Nord Stream AG and the midstream business WIGA.
Due to the company’s high financial flexibility, Wintershall Dea could adjust its financial framework correctly. Even with the exclusion of the planning of the Russian activities.
Business outside Russia
“We have been building up financial flexibility prudently and have maintained great discipline in our spending levels. The company is diversifying our portfolio, aiming for modest future growth in our business outside Russia. And we are investing in decarbonization solutions demanded by the energy transition. We will shape our future as a healthy, resilient, and flexible company,” concluded Mario Mehren.
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