One of the world’s biggest corporations is set to absorb a massive hit after announcing it is pulling its operations out of Russia.
Shell’s decision to pull out of Russia in the wake of that nation’s invasion of neighboring Ukraine is a $5 billion proclamation, over a billion dollars more than the initial $3.4 billion estimate.
The move involves removing all active oil and natural gas operations from Russia, though it is unclear if it will also involve divestment from the stock it may hold in Russian projects.
The world’s largest trader of liquified natural gas, Shell said the post-tax loss will not impact the company’s earnings.
“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,” Shell said in a statement Thursday.
“These charges are expected to be identified and therefore will not impact Adjusted Earnings.”
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