BASF exists markets of russia and belarus
Photo by: SuperAgronom.com
BASF wound down its business activities in russia and belarus as of July 10, 2022, the company's half-year financial report 2022 reads.
However, business to support food production remains an exception.
"This decision was driven by recent developments in the war of aggression on Ukraine and in international law, including the fifth E.U. sanctions package. In 2021, russia and belarus accounted for around 1% of the BASF Group’s total sales," the company comments.
Following a detailed review of the impact of the decision from April 27, 2022, impairments on assets of EUR 51 mln and provisions for obligations to company customers, suppliers and employees in the amount of EUR 27 mln were recognized by June 30, 2022. An impairment test was performed for Wintershall Dea’s russian assets as of June 30, 2022. This did not reveal any need for adjustment above and beyond the impairments recognized by Wintershall Dea in the first quarter.
Due to Russia’s war of aggression against Ukraine, Wintershall Dea tested BASF assets in russia and the midstream business for impairment in the first quarter of 2022. This led to impairments of EUR 545 mln on equity-accounted investments held by Wintershall Dea (BASF’s share: EUR 373 mln after taxes).
