Updated on 03/06/2022 at 12:36 p.m
- The Austrian oil company OMV is examining its stake in the Russian natural gas field Yuzhno Russkoye – as well as a possible sale and exit.
- The group no longer intends to invest in Russia in the future.
- The reason is Russia’s war against Ukraine.
The attack of Russia on the Ukraine also makes the partly state-owned Austrian oil company OMV reconsider its Russia strategy. There will be no more investments in Russia in the future, the 24.99 percent stake in the Yuzhno Russkoye natural gas field will be “strategically reviewed,” according to a statement on Saturday evening after a board decision: “This review includes all options, including the possibility of a sale or exit”. OMV acquired the stake from the German power plant operator Uniper in 2017 for around 1.7 billion euros.
Also read: All current information on Russia’s war against Ukraine in the live ticker
As a result, OMV has to write off 500 million to 800 million euros. “This non-cash value adjustment will burden the reported operating result in the first quarter of the current fiscal year,” the company said.
Write-off of more than a billion euros because of Nord Stream 2
In addition, there is another write-off of almost one billion euros due to the Nord Stream 2 pipeline company. OMV was involved in its financing, but the pipeline is now unlikely to be put into operation. OMV is making a value adjustment of 987 million euros due to the expected uncollectibility of the receivables from Nord Stream 2 AG. This will also have a negative impact on earnings before taxes in the first quarter of the current financial year.
Already at the beginning of the week, OMV announced that it would give up all negotiations with Gazprom about a possible participation in a huge gas field owned by the Russian state Gazprom.
© dpa