Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 30 October 2023 Author: Grzegorz Kuczyński
Wintershall Dea Is Working to Exit the Russian Market
German oil and gas producer Wintershall Dea decided to legally separate its local activities in Russia, including joint ventures with Gazprom. “What we are saying is that we cannot predict when an exit will be possible in terms of the actual disposal of shares,” according to Wintershall Dea CEO Mario Mehren. Currently, the company is pursuing plans to completely exit the Russian market by mid-2024.
German oil and gas producer Wintershall Dea decided to legally separate its local activities in Russia, including joint ventures with Gazprom. The company now sees Norway and Mexico as its key markets, Wintershall Dea CEO Mario Mehren said at a virtual conference. “It is unpredictable for us to say when the exit in terms of disposing of the shares will be possible. And yes, I can confirm that because of contractual obligations we are in discussions with our joint venture investors, co-investors in Russia about how to deal with that situation,” he stated. Mehren did not comment on whether nationalizing Wintershall Dea’s shares in Russian enterprises was being discussed. “Whether it will be nationalized or not, I think, is a question that goes to the Russian government,” the head of the company was quoted as saying by the Russian state news agency TASS. Wintershall Dea was one of the financial investors in Nord Stream 2. With a stake of 15.5 percent, it is also a shareholder in the Nord Stream gas pipeline. The company owns 25.01 percent of the Achim Development joint project with Gazprom. Together with Gazprom and Austria’s OMV, it manages the Severneftegazprom joint venture, which is developing the Yuzhno-Russkoye oil field. In turn, Wintershall Dea CFO Paul Smith noted that the company expects to take a loss of approximately €7.5 billion from its stakes in Russian assets going back to February 2022, including investments in Nord Stream and Nord Stream 2.
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