Shell to write off up to $5 billion in assets after exiting Russia

Oil major Shell has announced that it will write off between $4 and $5 billion in the value of its assets after pulling out of Russia.

Thursday’s announcement offers a first glimpse at the potential financial impact to Western oil majors of exiting Russia.

“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.”

Shell had previously estimated that Russia write-downs would reach $3.4 billion.

Further details of the impact of ongoing developments in Ukraine will be set out in Shell’s first-quarter earnings report on May 5, the company said.