LONDON – Shell faces writedowns on $400 million in Russian downstream assets, it said on Thursday, having announced $3 billion worth of other projects previously.
The oil major announced on Feb. 28 that it would quit its ventures in Russia with Gazprom and related entities including the flagship Sakhalin 2 liquefied natural gas (LNG) plant and the Nord Stream 2 pipeline project.
“It is expected that these decisions …will impact the carrying value of the related assets and lead to recognition of impairments in 2022,” Shell said in its annual report on Thursday.
The downstream assets come on top of $3 billion mentioned in its Feb. 28 announcement, a company spokesperson said.
Shell’s looming writedowns come amid a mass exodus of western oil majors, which includes BP facing a $25 billion writedown for its planned divestment of Russian assets.
France’s TotalEnergies has said it is sticking with its Russian investments.