Shell to weather up to $5bn hit from Russia write downs
Energy giant Shell said it could weather a $5bn hit in the first quarter after its decision to cut ties with Russia following its invasion of Ukraine.
In a trading update today the firm said the post-tax impact from impairment relating to Russian activities are expected to be between $4 to $5bn.
It comes after the British oil major severed ties with its Russian projects this year following the invasion of Ukraine, including exiting its stake in the Nordstream II gas project.
The $5bn figures is higher than bosses previously expected, with bosses previously predicting the Russia write-downs would reach around $3.4 billion
Shell said its oil and gas trading activities are set to get a boost from soaring energy prices, however, with earnings from LNG trading expected to be higher in the quarter from the previous three months.
Earnings from oil trading are also set to be “significantly higher” in the quarter.