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OMV joins large energy companies and withdraws from Russia


The Austrian group OMV announced on Saturday that it is withdrawing from Russia, being the latest energy company to make such an announcement, and warned that it will suffer an estimated impact of 1.5 – 1.8 billion euros (1, 6 – two billion dollars), in an attempt to distance itself from Russia after the invasion of Ukraine, reports Reuters.

“In the light of recent developments, OMV is re-evaluating its commitment to Russia. Although Russia is one of the key regions in OMV’s exploration and production portfolio, the Executive Committee has decided not to make any future investments in Russia,” the OMV statement said.

Other Western energy rivals, such as Shell, BP and Exxon Mobil, announced this week that they would give up business in Russia, an oil-rich country, following the invasion of Ukraine.

Russia is a key region for OMV, one of five Western companies that have joined as financing partners in Gazprom’s Nord Stream 2 project.

On Saturday, OMV announced that Russia would no longer be one of its core regions, warning that it would record asset losses related to Nord Stream 2 and a gas field in Siberia, and demanded “an end to all hostilities,” according to Agerpres.

“The war in Ukraine is a tragic and dangerous situation, which is causing great suffering to many, and we are watching the conflict with the utmost dismay. Our deepest sympathy goes out to the direct and indirect victims of Russia’s military action,” said the general manager Alfred Stern.

OMV will abandon plans to join the Siberian Achimov gas field project, and is reviewing strategic options for its 24.99% stake in the Yuzhno Russkoye gas field, which supplies the original Nord Stream gas pipeline and adds 100,000 barrels of oil equivalent per day (boe/d) to its production.

Options include a possible sale or exit from Yuzhno Russkoye, OMV said. The company expects first quarter results to reflect a negative 0.5 – 0.8 billion euro equity adjustment related to the stake.

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