Royal Dutch Shell products in Torzhok, Russia.
Andrey Rudakov | Bloomberg | beautiful pictures
Cover announced that it would write off $4 billion to $5 billion of its assets after pulling out of Russia following its unprecedented invasion of Ukraine.
Thursday’s announcement provides a first look at the potential financial impact on Western oil companies pulling out of Russia.
“For the first quarter of 2022 results, the after-tax impact of long-term asset decline and additional fees (e.g. write-offs, projected credit losses, and difficult contracts) towel) related to Russian operations is expected to be $4 to $5, Shell said in a statement on Thursday.
“These fees are expected to be determined and therefore will not affect Adjusted Earnings.”
The company said more details on the impact of developments taking place in Ukraine will be presented in Shell’s first-quarter earnings report on May 5.
Shell forced to apologize on 8/3 for buying a highly discounted shipment of Russian oil two weeks after the Russian invasion. It later announced its withdrawal from all Russian hydrocarbons.
The company said it would no longer buy Russian crude and would close service stations, aviation fuel and lubrication operations in Russia. The company has announced it will withdraw from the joint venture with the Russian gas giant Gazprom and its related entities.
This is a breaking news story and will be updated shortly.
