Austrian oil, gas and chemicals group OMV has announced that it will no longer pursue investments in Russia in the future. It said the situation in Ukraine as a result of Russia's war of aggression necessitated a reassessment of its business with the country.
The company said on March 5 that it would no longer consider the country as one of the core regions of its Exploration & Production activities. As a result, the company said it was looking into divesting and exiting OMV's 24.99 percent stake in the Yuzhno Russkoye natural gas field. In addition, all talks with Gazprom on a possible 24.98 percent stake in two blocks of the Achimov formation in the Urengoy natural gas field in Western Siberia have already been broken off. Receivables against Nord Stream 2 AG will also be written down.
As a result of these measures, the Group expects a value adjustment of between €1.5 billion and €1.8 billion, which will have a negative impact on the operating result in the first quarter of the current fiscal year. OMV thus reduced its own net fixed assets in Russia to around 2 percent of its total property, plant and equipment and its investments accounted for using the equity method.
"The war in Ukraine is a tragic and threatening situation, which means great suffering for many people and which makes us very sad. Our deepest sympathy goes out to all people who are direct and indirect victims of the Russian military strike. We demand an immediate end to all hostilities. Only in peace can there be freedom and prosperity," said Alfred Stern, Chairman of the Board and CEO of OMV.