Vladimir Putin has announced that he wants to nationalize even more branches of international companies by force. This time it also hits a local giant. Austria’s OMV and Germany’s Wintershall Dea will formally lose their shares in gas production projects in the Russian Arctic, according to a presidential decree.
All activities with Russian involvement, including Wintershall Dea’s participation in the Nord Stream gas pipeline and joint ventures with Gazprom, must be legally separated by mid-2024, according to a decree signed by Kremlin chief Vladimir Putin on Tuesday.
Everything goes into Russian hands
Accordingly, OMV and Wintershall Dea’s interests in the Yuzhno Russkoye field and in the Achimov projects, both located in the Yamal-Nenets region in Russia’s far north, will be transferred to newly created Russian companies.
All shares held by foreign companies in joint ventures with gas giant Gazprom will be transferred to the new Russian companies. Proceeds from the sale of the shares will be transferred to special accounts of the former foreign owners, the company added. All previously valid corporate contracts will no longer be valid once the decision is signed.
OMV is already retreating
OMV had already withdrawn from Russia last year after the outbreak of the conflict in Ukraine. Wintershall Dea, a joint venture between BASF and Russian billionaire Mikhail Fridman’s investment company LetterOne, is about to withdraw from Russia.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
