BASF, the German chemical giant, and LetterOne, an investment group led by Mikhail Fridman, have decided to maintain their ownership stakes in the Russian business of the oil and gas company Wintershall Dea. This decision comes despite the ongoing sale of foreign assets to Harbour Energy, a transaction that involves the transfer of Wintershall Dea's oil and gas business to Harbour Energy. However, the deal excludes Russia-related businesses and the gas transmission business in Germany. The legal separation of these Russia-related businesses is part of an ongoing process.

The anticipated completion of the transaction involving BASF, LetterOne, and Harbour Energy is slated for the fourth quarter of 2024. The report indicates that even as the foreign assets are being divested, BASF and LetterOne will continue to be the owners of the segment of Wintershall Dea associated with Russia. This decision highlights the strategic approach taken by both entities to maintain a presence in the Russian oil and gas market.

Wintershall Dea, a company resulting from the 2019 merger of BASF's oil and gas assets with the LetterOne investment group, faces significant changes in its structure. The upcoming transaction with Harbour Energy is part of a broader strategy to reshape the company's portfolio. The net shareholder loss for Wintershall Dea in 2023 is reported to be €51 million, which represents a substantial decrease compared to the previous year, where the loss was 95 times higher. The decision to withdraw from the Russian market had considerable implications for the company, leading to a comprehensive restructuring of its business operations.

Mario Mehren, the head of Wintershall, acknowledged the serious consequences of the withdrawal from Russia. The company is currently undergoing a restructuring process, which involves adjusting its operations and portfolio to align with the changing dynamics of the oil and gas industry. The decision to retain ownership of the Russia-related businesses signifies a commitment to maintaining a foothold in the Russian energy market despite the divestiture of certain assets.

Wintershall Dea positions itself as the largest independent producer of gas and oil in Europe, with operations spanning Norway, Germany, and Russia (in collaboration with Gazprom). The company also has a significant presence in Latin America, Egypt, and the Middle East. The ongoing restructuring is expected to streamline its operations and enhance efficiency in response to market challenges.

In a separate development, BASF is accelerating the sale of shares in two of its enterprises in China. This decision follows accusations of rights violations against Uyghurs by a local partner. BASF cited serious allegations against its Chinese partner, accusing them of activities "incompatible with the values of BASF." As a response, BASF is expediting the ongoing process of selling its shares in two joint ventures situated in China's Xinjiang Uyghur Autonomous Region. This move underscores the company's commitment to upholding ethical standards and distancing itself from partnerships associated with human rights concerns.