Shell has announced that it will write off between $4 and $5 billion in the value of its assets after pulling out of Russia following the country’s unprecedented invasion of Ukraine.

Thursday’s announcement gives us an early glimpse of the possible financial consequences for Western oil majors if Russia leaves.

The post-tax effect from impairment of noncurrent assets and other charges (e.g., interest) will be reflected in the quarter’s first quarter 2022 results. Shell stated Thursday that write-downs and credit loss, as well as onerous contracts, relating Russia activities, are likely to reach $4-5 billion.

These charges will be determined and should not affect Adjusted Earnings.

Shell said that it will present further information on the effect of developments in Ukraine in the first-quarter earnings reports, due out May 5.

Shell was forced to apologize on March 8For purchasing a discounted consignment Russian oil just two weeks after Russia invaded. The company announced its withdrawal from all Russian oil-related activities.

Russian crude oil was no longer being purchased by the company. The Russian aviation fuel, service stations and lubricants businesses were also shut down. Already, the company had pledged to end its joint ventures in Russian gas production. GazpromIts related entities.

This news item is currently in breaking news and will soon be updated.