The Austrian group OMV has announced that it is withdrawing from Russia

The Austrian group OMV has announced that it is withdrawing from Russia

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The Austrian group OMV announced on Saturday that it is withdrawing from Russia, being the latest energy company to make such an announcement, and warned that it will suffer an estimated impact of 1.5 – 1.8 billion euros (1, 6 – two billion dollars), in an attempt to distance itself from Russia after the invasion of Ukraine, reports Reuters.

“In the light of the latest developments, OMV is re-evaluating its commitment to Russia. Although Russia is one of the key regions in OMV’s exploration and production portfolio, the Executive Committee has decided not to make any future investments in Russia, “the Austrian group said in a statement.

Other Western energy rivals, such as Shell, BP and Exxon Mobil, announced this week that they would give up business in Russia, an oil-rich country, following the invasion of Ukraine.

Russia is a key region for OMV, one of five Western companies that have joined as financing partners in Gazprom’s Nord Stream 2 project.

On Saturday, OMV announced that Russia would no longer be one of its core regions, warning that it would record asset losses related to Nord Stream 2 and a Siberian gas field, and called for “an end to all hostilities.”

“The war in Ukraine is a tragic and dangerous situation, which is causing great suffering to many, and we are watching the conflict with the utmost dismay. Our deepest sympathy goes out to the direct and indirect victims of Russia’s military action, “said Director-General Alfred Stern.

OMV will abandon plans to join the Siberian Achimov gas field project, and is reviewing strategic options for its 24.99% stake in the Yuzhno Russkoye gas field, which supplies the original Nord Stream gas pipeline and adds 100,000 barrels of oil equivalent per day ( boe / d) to the production of OMV.

Options include a possible sale or exit from Yuzhno Russkoye, OMV said. The company expects first quarter results to reflect a negative 0.5 – 0.8 billion euro equity adjustment related to the stake.

This week, OMV announced that it has abandoned plans to take over a stake in a Gazprom gas field project and is reviewing its role in the Nord Stream 2 pipeline. Last week, German authorities suspended the procedures for authorizing Nord Stream 2 $ 11 billion project that would have doubled Russian gas supplies to Germany in response to Russia’s actions in Ukraine.

On Saturday, OMV announced that it would suffer a blow of almost one billion euros in connection with Nord Stream 2.

OMV’s exposure to Russia will now be limited to about 2% of total fixed assets, OMV said.