BASF takes huge Wintershall Dea write-off

BASF has taken a massive write-off of assets—$5.8 billion in the fourth quarter—for Wintershall Dea as the oil and gas affiliate exits completely from its Russian operations. The write-down includes the value of Wintershall Dea’s stake in the Nord Stream pipeline from Russia to Germany. BASF has taken a total of $7.8 billion in write-offs in 2022 related to Wintershall Dea, in which it owns a 73% interest. “Continuing to operate in Russia is not tenable. Russia’s war of aggression in Ukraine is incompatible with our values and has destroyed co-operation between Russia and Europe,” Wintershall Dea CEO Mario Mehren says in a statement. He also accuses Russia of expropriating Wintershall Dea’s joint ventures in the country. In its preannouncement of 2022 earnings, BASF says it expects a loss of $1.5 billion for the year, primarily because of the write-down. It earned nearly $6.0 billion in 2021.