28 Jul 2022 09:24

BASF reports on wind-down of business in Russia, Belarus

MOSCOW. July 28 (Interfax) - German chemical giant BASF SE has reported on the wind-down of its projects in Russia and Belarus by the previously announced deadline.

"As announced on April 27, 2022, BASF wound down its business activities in Russia and Belarus as of July 10, 2022. Business to support food production remains an exception," the company said in its report for the first half of 2022.

Following a detailed review of the impact of this decision, BASF recognized impairments on assets of 51 million euros and provisions for obligations to customers, suppliers and employees in the amount of 27 million euros by June 30, 2022, the company said.

Extreme uncertainty continues to predominate in the current situation and future developments could have a material and unfavourable impact on assets and lead to their further impairment, BASF said.

In 2021, Russia and Belarus accounted for around 1% of BASF Group's total sales of 78.6 billion euros. As of April 27, the group had 684 employees in the two countries and the company said it planned to support them until the end of 2022.

BASF operates in six main business segments: chemicals, materials, industrial solutions, surface technologies, nutrition and care, and agricultural solutions. In Russia, the group had at least five subsidiaries: BASF LLC (fertilizer trading), BASF Industrial Metals LLC (trading of metals in primary forms), BASF Yug LLC (seed trading), Chemetall LLC (industrial chemicals trading) and BASF Vostok LLC (paints and varnishes manufacturing).