UK Energy Company Shell Faces 6 Trillion Won Asset Loss Due to Withdrawal from Russian Business

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] British energy company Shell has estimated that asset losses could reach up to $5 billion (approximately 6.1 trillion KRW) due to its withdrawal from Russia following the invasion of Ukraine.

According to CNBC and other sources on the 7th (local time), Shell stated that the asset losses from exiting its Russian operations are expected to be between $4 billion and $5 billion, and that this will be reflected in its Q1 earnings report to be released early next month. This amount includes impairments of non-current assets, bad debt write-offs, and expected credit losses.

After the invasion, Shell purchased discounted Russian crude oil for two weeks but apologized on the 8th of last month and promised to withdraw from the business. Shell initially announced that the related costs would amount to $3.4 billion, but a detailed review of the items suggests that the costs were actually higher.

Following this announcement, Shell's stock closed at 2,086.00, down 2.13% from the previous day.

This content was produced with the assistance of AI translation services.