Mario Mehren sounds frustrated, even the day after. “We didn’t do it lightly,” says the head of the gas company Wintershall Dea. But the situation left the company no other choice. “Gazprom cleared all accounts,” says Mehren der Süddeutsche Zeitung. “And our shares are now worthless shells” – with no economic value, no voting rights. This is how 30 years of history end – the history of Wintershall Dea in Russia.
The Kassel-based group had already announced the turning point on Tuesday evening. All Russian businesses, primarily Siberian gas fields that Wintershall exploited in joint ventures with Gazprom, will be “deconsolidated”. In addition, the failed engagement in the Baltic Sea pipeline Nord Stream 2 along with investments in pipelines that should transport the Nord Stream gas onshore. The result: a “one-time, non-cash expense of 5.3 billion euros”. Wintershall Dea now has to write off that much – with consequences for the parent company BASF as well: Its loss of 1.4 billion euros in the 2022 financial year is mainly due to Wintershall Dea. And so to the war in Ukraine.
Wintershall had already drawn the first conclusions at the beginning of March. At that time, the company stopped all plans for new oil and gas projects in Russia. On the other hand, the existing joint ventures wanted to be continued, especially since they were more than flourishing in view of high gas and oil prices. Then, shortly before Christmas, came Presidential Decree Number 943: the Kremlin reduced the prices at which the joint ventures resell their raw materials to Gazprom – retrospectively from March. “The joint ventures were de facto economically expropriated,” says Mehren.
The group hits the mark. Around half of Wintershall Dea’s production recently came from Russia. There will now be increased involvement in countries such as Norway and Algeria, whose importance as gas suppliers has grown as a result of the crisis. “Development is tough,” he says. “But we are prepared for this moment.” He does not want to speak of a downsizing. But the structures of the company would now have to be adjusted.
On Wednesday afternoon, the board of directors will address the employees with a statement. “Wintershall Dea believed in this collaboration,” he writes. But Russia has “become unpredictable – in every respect”. An era has come to an end. For Wintershall Dea, on the other hand, a new era could be approaching: on the stock exchange. A spokesman for the chemical company said on Wednesday that BASF is sticking to its plans to sell its 72.7 percent stake. And without the ballast of the Russian business, such an IPO could even be easier.