BASF takes huge writedown as Wintershall Dea exits Russia

[Elderberry]

Reuters By Victoria Waldersee and Christoph Steitz 1/18/2023

•  Summary

•   Keeping Russian business "not tenable" -Wintershall Dea

•   BASF unveils 7.3 billion euro non-cash impairment for 2022

•   BASF flags 1.38 bln euro net loss in 2022

BERLIN/FRANKFURT, Jan 18 (Reuters) - BASF (BASFn.DE) will take a 7.3 billion euro ($7.9 billion) writedown as its Wintershall Dea (WINT.UL) energy business pulls out of Russia, the German chemicals giant said, triggering a net loss for 2022.

Wintershall Dea has deep ties to Russia, including stakes in the Nord Stream gas pipelines and joint ventures with Russia's Gazprom (GAZP.MM).

Russian billionaire Mikhail Fridman's investment firm LetterOne owns a 27.3% stake in it.

"Continuing to operate in Russia is not tenable," Wintershall Dea CEO Mario Mehren said.

He added that limitations imposed by Russia on Western-owned assets had made it impossible to operate properly "and resulted in an economic expropriation of the joint ventures in Russia".

More: https://www.reuters.com/markets/commodities/basf-suffers-14-mln-euro-net-loss-shutdown-wintershall-dea-russia-operations-2023-01-17/

[catfish1957]

They are just now exiting?  Pretty much of all U.S. oil, gas, and chemical left soon after the invasion.

Hmmmm.....

Kind of goes back to my earlier comments around equitable pain of Europe supporting Ukraine.

[Maj. Bill Martin]

Well, better late than never.

The biggest long-term repercussion from this invasion is going to be a reluctance/refusal of the West to enter into business relationships in Russia, and perhaps with Russian companies period. The EU and the West/Western allies are more than 60% of the world's GDP.  That is going to leave a big "ouch" on the Russian economy, and additional misery for the Russian people, for a very long time.

[catfish1957]

Well, better late than never.

The biggest long-term repercussion from this invasion is going to be a reluctance/refusal of the West to enter into business relationships in Russia, and perhaps with Russian companies period. The EU and the West/Western allies are more than 60% of the world's GDP.  That is going to leave a big "ouch" on the Russian economy, and additional misery for the Russian people, for a very long time.

Agree.  But more than anything just compounds the hypocrisy that I am observing about this whole Ukraine debacle. 
Ukraine is what 8,000 from our border.  Germany 100's?  There needs to be an equitable amount of pain for all this support.

Where I retired from, took a $4B hit for their exit.  That of course directly is shaved off the Market Cap, and a loss for stockholders.
IMO... and I might be jaded, but I think Zellinskyyyy. is just a just half a notch "less worse" than Putin.  I am sick of the Grift.