Partner of Gazprom announced the end of the era of partnership between Russia and Germany

The HEAD of the German Wintershall sees in Russia's actions in Ukraine a turning point and the end of an era of intense and long economic cooperation between Moscow and Berlin. The company wrote off Russia-related assets by €1,

RUSSIA has crossed red lines in partnerships with European companies and it is no longer possible to “continue business as usual” with it, said Mario Mehren, head of the German oil and gas company Wintershall Dea.

“Even long-term partnerships have a red line. Russia has crossed that line with this military aggression,” Mehren said. According to him, Russia's actions in Ukraine have become a turning point in global and European geopolitics, as well as the politics of Wintershall.

“For Germany and Russia, this war marks the end of an era. Eras of long and intense economic cooperation,” Mehren said.

According to him, Wintershall believed in this cooperation, although the company was criticized. However, in his opinion, it is no longer possible to continue business as usual with Russia.

Mehren said he does not expect any expropriation of assets in Russia and expects Moscow to continue to adhere to contractual obligations. Answering RBC's question whether he was afraid that Gazprom would force the company to sell shares in joint ventures in Russia, the CEO expressed the hope that Moscow would adhere to the investment protection agreement that it had signed with Germany.

Partner of "Gazprom" announced the undermining of economic ties between Russia and Europe Business

Mehren explained that gas from Russia could be replaced, but this would not happen quickly, as the German government had repeatedly said. Wintershall is responsible for the energy sector in Europe and its employees, so the management decided to continue to participate in existing projects in Russia.

Read on RBC Pro Pro Import substitution has not reached its goals before.Will something change now Predictions Pro Busaand the EU is raging bird flu: what it means for the global economy Articles Pro Crisis squared:How the 2022 Recession is DifferentPro x The Economist The Fed made a historic mistake.Will this lead to a global recession?Can't wait:how Russian business will change in two or three years

The company will focus its activities on strengthening its portfolio outside of Russia and diversifying energy sources.

On February 24, after the start of the Russian special operation in Ukraine, Meren announced that Russia was undermining economic cooperation with Europe, which had been created for decades.

According to the company's report for the first quarter of 2022, Wintershall Dea wrote down €1.5 billion in assets due to loss of revenue from the Nord Stream 2 project and transactions related to Russia. Slightly more than €1 billion of this amount comes from investments and payments under Nord Stream 2, and the remaining amount comes from income from operations in Russia.

Wintershall Dea is the largest oil and gas company in Europe, owned by the petrochemical concern BASF (67%) and LetterOne by Mikhail Fridman, German Khan and Alexei Kuzmichev. It produces gas and oil in Norway, Germany, as well as in Russia together with Gazprom, Latin America, Egypt and the Middle East. In addition, it owns the gas transportation business, including 15.5% of Nord Stream AG (operator of the Nord Stream gas pipeline). She was also one of the investors in the construction of Nord Stream 2.

Favorable course inFavorable exchange rate at VTB officesThe larger the amount, the greater the benefit.More than 1,000 branches across the countryPreliminary calculation inonline converter