Shell has announced that the company will write down about 4-5 billion USD after withdrawing Russia because of the conflict in Ukraine.
The announcement on April 7 provides the first glimpses of the potential financial impact on Western oil companies pulling out of Russia.
In the statement, Shell said: “For the first quarter of 2022 results, the after-tax impact from the weakening of long-term assets and additional charges related to Russian operations is expected to range from 4-5 billion dollars”.
Shell also added that these fees are expected to be determined and therefore not affect adjusted earnings.
Details of the impact of developments happening in Ukraine will be presented in Shell’s first-quarter earnings report on May 5.
Shell was forced to issue an apology on March 8 for buying a highly discounted shipment of Russian oil two weeks after the outbreak of hostilities. After that, the company announced the complete withdrawal of related to Russian hydrocarbon fuel.
The company said it would not buy Russian crude oil and would close service stations, aviation fuel and lubricant-related operations in Russia. Shell has also announced it is withdrawing from a joint venture with Russian gas giant Gazprom and related entities.
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