OSLO: Norwegian energy group Equinor says it should begin the method of divesting from its joint ventures in Russia amid Moscow’s invasion of Ukraine.
Equinor is the second main European oil and gasoline producer, after energy main BP, to announce its exit from Russia as Western international locations ramp up efforts to punish Russia with new sanctions.
“In the current situation, we regard our position as untenable,” Equinor chief govt Anders Opedal stated in an announcement.
“We will now stop new investments into our Russian business, and we will start the process of exiting our joint ventures in a manner that is consistent with our values.”
The firm, which is majority owned by the Norwegian state, has been current in Russia for over 30 years, and in 2012 agreed strategic cooperation with Russia’s Rosneft.
Those plans have been scaled down due to Western sanctions imposed on Moscow for Russia’s annexation of Crimea from Ukraine in 2014, however Equinor remained a associate in a number of joint ventures.
Equinor’s cooperation with Rosneft contains the heavy oil and gasoline subject North Komsomolskoye in West Siberia and the North Danilovsky growth in Eastern Siberia.
Equinor’s petroleum manufacturing in Russia stood at 25,000 barrels of oil equal per day (boepd), and the corporate has 70 workers in Russia, in accordance to its web site.
That publicity is comparatively small in contrast to Equinor’s whole manufacturing of round two million boepd and the bigger investments in Russia held by BP, Shell, and France’s TotalEnergies.
Equinor’s non-current belongings in Russia have been valued at US$1.2bil (RM5.04bil) on the finish of 2021, and the corporate expects the divestment to end in impairments.
“We are all deeply troubled by the invasion of Ukraine, which represents a terrible setback for the world, and we are thinking of all those who are suffering because of the military action,” Opedal stated.
On Sunday, the Norwegian authorities introduced that its sovereign wealth fund, the world’s largest, would divest its Russian belongings, price round 25 billion Norwegian crowns (US$2.80bil or RM11.75bil). — Reuters
