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Shell expects $5bn hit following Russia exit

Shell expects to snatch a blow of up to $ 5 billion in the first quarter of 2022 following its decision to leave Russia.

The London-listed energy group released the announcement on Thursday after saying in February It was retreating Of all its three joint ventures with Gazprom, the Kremlin-supported gas producer.

It later announced that it would stop new purchases of Russian oil after the This was revealed by the Financial Times It earned $ 20 million by buying a cargo of Russian oil.

Shell was one of them Many companies retreat From Russia following its full-scale invasion of neighboring Ukraine on February 24, when Western groups re-evaluated their ties with Moscow and in some cases tore up business ties that had been in the making for decades.

Major Petroleum has previously said that the decision to leave the joint ventures in Russia would result in impairment charges, but did not provide a figure.

“For the results of the first quarter of 2022, the post-tax impact of the impairment of non-current assets and additional charges (debtors’ checks, expected credit losses and onerous contracts) relating to Russia’s operations [is] It is expected to be $ 4-5 billion, “the company said in a trade update.

Shell also said its cash flow from operations “would be adversely affected by very significant working capital flows”.

“Given the unprecedented volatility in commodity prices that prevailed until the end of the quarter, further significant CFFO movements could be seen from the marginal effects on derivatives, changes in inventory volumes and duty and debtors,” it read.

In early March, Shell did a Purchase of Russian oil When many merchants have already avoided new cargo from the country.

Ben Van Borden, CEO of Shell, said at the time that he was “well aware that our decision to purchase a cargo of Russian crude oil. . . It was not right and we are sorry. “

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Shell expects $5bn hit following Russia exit Source link Shell expects $5bn hit following Russia exit

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