Shell to Write Off as Much as $5 Billion in Assets after Exiting Russia

The London-headquartered oil and gas company, Shell Plc., stated that it will write off up to $5 billion in the value of its assets following the decision to exit Russia in a sigh of financial sanction due to its invasion in Ukraine.

“For the first quarter 2022 results, the post-tax impact from impairment of non-current assets and additional charges (e.g. write-downs of receivable, expected credit losses, and onerous contracts) relating to Russia activities are expected to be $4 to $5 billion,” said Shell in the statement. 

However, the write down is expected to be identified and therefore will not impact Adjusted Earnings, according to Shell.

The company said it will exit all its Russian operations, including a major liquefied natural gas plant in the Sakhalin peninsula.