Shell Faces $400 Million Writedown on Russian Downstream Assets

LONDON (Reuters) — Shell faces writedowns on $400 million in Russian downstream assets, having announced $3 billion worth of other projects previously, the company said.

In February, the oil major announced that it would quit its ventures in Russia with Gazprom and related entities including the flagship Sakhalin 2 LNG plant and the Nord Stream 2 pipeline project.

"It is expected that these decisions ...will impact the carrying value of the related assets and lead to recognition of impairments in 2022," Shell said in its annual report.

The downstream assets come on top of $3 billion mentioned in its February announcement, a company spokesperson said.

Shell's production from Russian oil and gas projects reached stood at 140,000 barrels of oil equivalent per day (boed) compared with around 2.2 million boed total volumes for sale, according to its annual report and a spokesperson.

Shell's writedowns come amid a mass exodus of western oil majors. BP is facing a $25 billion writedown for its planned divestment of Russian assets.

France's TotalEnergies has said it is sticking with its Russian investments.

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