Germany’s BASF takes huge writedowns as unit exits Russia

Jan 17, 2023, 12:44 PM | Updated: Jan 18, 2023, 2:55 am

BERLIN (AP) — Germany-based chemicals maker BASF says it is taking some 7.3 billion euros ($7.9 billion) in write-downs related to the exit from Russia of its Wintershall Dea gas and oil subsidiary.

Wintershall Dea said late Tuesday that it “intends to fully exit Russia in an orderly manner complying with all applicable laws and regulations.” The unit’s CEO, Mario Mehren, said in a statement that “continuing to operate in Russia is not tenable.”

“Russia’s war of aggression in Ukraine is incompatible with our values and has destroyed cooperation between Russia and Europe,” he added. He also pointed to restrictions imposed by the Russian government on the operations of Western countries and “external interferences in our joint venture operations.”

Parent company BASF said in its preliminary 2022 earnings statement that it was taking charges on its holding in Wintershall Dea totaling about 7.3 billion euros, 5.4 billion euros of them in the fourth quarter of last year.

It said that is expected to push it to a full-year net loss of nearly 1.38 billion euros, compared with a profit of more than 5.5 billion euros in 2021.

BASF said that “the Russian participations of Wintershall Dea have been re-evaluated and write-downs on the European gas transportation business have been made, including a complete write-down on the participation in Nord Stream AG.”

Wintershall Dea has a 15.5% stake in the operator of the Nord Stream 1 pipeline that runs under the Baltic Sea, which is majority-owned by Russia’s Gazprom.

The pipeline transported natural gas from Russia to Germany until the end of August. Russia hasn’t supplied any gas to Germany, one of the countries giving military and other help to Ukraine in the war, since then.

Undersea explosions damaged Nord Stream 1 in September. Investigators have described them as an act of sabotage, but have not said who they think might be responsible.

___

Follow AP’s coverage of the war in Ukraine: https://apnews.com/hub/russia-ukraine

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Nathan Chasing Horse stands in court. Monday, Feb. 6, 2023, in North Las Vegas, Nev. Nathan Chasing...
Associated Press

‘Dances With Wolves’ actor charged in 2018 rape in PNW

Canadian police confirmed Tuesday they are pursuing a criminal case against a former "Dances With Wolves" actor who was arrested last week and charged in Nevada with sexually abusing and trafficking Indigenous women and girls.
9 hours ago
Associated Press

Minister: Cybercrimes now 20% of Spain’s registered offenses

MADRID (AP) — Spain’s government on Wednesday pledged stronger action against cybercrime, saying it has come to account for about a fifth of all offenses registered in the country. Interior Minister Fernando Grande-Marlaska said police would be given additional staff, funding and resources to address online crime. He said reported cases of cybercrime were up […]
1 day ago
Miners leave the Yanomami Indigenous territory ahead of expected operations against illegal mining ...
Associated Press

Brazil squeezes illegal miners out of Yanomami territory

ALTO ALEGRE, Brazil (AP) — Armed government officials with Brazil’s justice, Indigenous and environment agencies Wednesday began to press thousands of illegal gold miners out of Yanomami Indigenous territory citing widespread river contamination, famine and disease they have brought to one of the most isolated groups in the world. People involved in illegal gold dredging […]
1 day ago
Associated Press

Germany’s Merkel receives UNESCO peace prize in Ivory Coast

YAMOUSSOUKRO, Ivory Coast (AP) — Former German Chancellor Angela Merkel received a UNESCO peace prize Wednesday for her decision to welcome more than 1.2 million migrants to Germany despite resistance at home and among European partners. Organizers said that Merkel showed political courage when Germany welcomed refugees in 2015-2016 who had fled conflicts in Syria, […]
1 day ago
FILE - Queen Margrethe attends the Danish Parliament's celebration of her 50th Regent's Anniversary...
Associated Press

Danish queen to undergo ‘major back surgery’

COPENHAGEN, Denmark (AP) — Denmark’s Queen Margrethe II, whose half-century reign makes her Europe’s longest-serving monarch, will undergo “major back surgery” later this month, the royal palace said Wednesday. The 82-year-monarch will be hospitalized afterward and undergo “a longer rehabilitation process,” the royal household said in a statement. “During a long period, Her Majesty has […]
1 day ago
FILE - Composer John Williams poses on the red carpet at the 2016 AFI Life Achievement Award Gala T...
Associated Press

BSO plan to digitize John Williams concerts almost complete

BOSTON (AP) — An effort to digitize more than 200 Boston Pops radio broadcasts conducted by John Williams from 1979 until 1991 is almost complete, the Boston Symphony Orchestra announced Wednesday, Williams’ 91st birthday. The project to preserve 233 live radio broadcasts that were recorded on 256 one-quarter inch (0.63 centimeter) reel-to-reel analog tapes that […]
1 day ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Germany’s BASF takes huge writedowns as unit exits Russia