Shell Warns of Up to $5 Billion Hit From Russia Exit https://www.wsj.com/articles/shell-to-book-up-to-5-billion-in-impairments-from-russia-operations-11649314101
Shell PLC said Thursday it expects to book accounting charges of up to $5 billion in the first quarter related to its decision to exit its joint ventures with Russian energy giant Gazprom PJSC in the wake of Russia’s invasion of Ukraine.
The London-based oil major provided the guidance ahead of first-quarter earnings scheduled in early May. After Moscow’s invasion of Ukraine, Shell ended its involvement in financing the Nord Stream 2 natural-gas pipeline project. It also owns a 27.5% stake in a major offshore gas project in Russia’s far east that is 50% owned by Gazprom and supplies around 4% of the world’s liquefied-natural-gas market.
The U.K. company said Thursday the impairment isn’t expected to affect adjusted earnings. It is expected to include write-downs of receivables and expected credit losses.
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