Putin seizes OMV’s properties in Russia

German company Wintershall Dea is also set to officially lose its stakes in gas production projects in the Russian Arctic. The investments are scheduled to be transferred to newly established Russian companies.

By presidential decree, Austria’s OMV and Germany’s Wintershall Dea will officially lose their stakes in gas production projects in the Russian Arctic. All activities with Russian involvement, including Wintershall Dea’s participation in the Nord Stream gas pipeline and joint ventures with Gazprom, will be legally separated by mid-2024, according to a decree signed by Kremlin President Vladimir Putin on Tuesday.

Accordingly, the interests of OMV and Wintershall Dea 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 the newly established Russian companies. All shares held by foreign companies in joint ventures with gas giant Gazprom are scheduled to be transferred to the new Russian companies. Proceeds from the sale of shares will be transferred to special accounts of the former foreign owners. All previously valid company contracts will no longer be valid once the decree is signed.

OMV had already withdrawn from Russia last year after the outbreak of the Ukrainian conflict. Wintershall Dea, a joint venture between BASF and Russian billionaire Mikhail Fridman’s investment firm LetterOne, is on the verge of withdrawing from Russia. (APA/Reuters)