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Gas production in Siberia: the end of a business era
Photo: Justin Jin / dpa
German oil and gas company Wintershall Dea and Austria's OMV are formally losing their shares in gas production projects in Russia, according to a presidential decree. This is reported by the Reuters news agency, citing decrees signed by Kremlin chief Vladimir Putin. The decrees served to safeguard national interests, it was said.
Specifically, OMV's and Wintershall Dea's holdings in the Yuzhno Russkoye natural gas field and the Achimov formation in Siberia are to be transferred to newly founded Russian companies. All activities with Russian participation, including Wintershall Dea's participation in the Nord Stream gas pipeline and the joint ventures with Gazprom, are to be legally separated from the German company by mid-2024.
The proceeds from the sale of the shares are to be transferred to special accounts of the previous foreign owners. All previously valid company contracts are to lose their validity with the signing of the decrees.
Wintershall Dea said it was still analysing the situation in detail. At the beginning of this year, the Group had already announced the end of its business in Russia, which most recently accounted for around 50 percent of total production. CEO Mario Mehren had said that the shareholdings had been "de facto economically expropriated". With the decrees, the loss of control of the Germans is now on record.
OMV had already withdrawn from the country last year after Russia's attack on Ukraine. The Viennese oil, gas and chemical group held a stake of almost a quarter in Yuzhno Russkoye, which was almost completely written off. According to the decrees, OMV's assets are now to be sold to the insurance group Sogas. OMV also said it was still reviewing Putin's decree.
Since Russia's attack on Ukraine last year, numerous Western corporations have withdrawn from the country, often at the cost of billions in losses. Russian companies have already gained control of key Western assets in the country, including Carlsberg breweries, yoghurt maker Danone companies and the national subsidiaries of energy companies Uniper and Fortum.
ssu/Reuters