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37 – Subsequent events

On January 20, 2022, the government bill for the Eco Social Tax Reform Act passed the third reading of the National Parliament of Austria. The bill stipulates the reduction in corporate income tax rate from 25% to 24% in 2023 and further to 23% from 2024 onward. Had the new tax rates been substantially enacted as of December 31, 2021, the Group’s deferred tax assets would have decreased by EUR 42 mn.

On February 2, 2022, Borealis Group has received a binding offer from EuroChem for the acquisition of Borealis’ nitrogen business including fertilizer, melamine and technical nitrogen products. The offer values the business on an enterprise value basis at EUR 455 mn. Borealis Group will initiate mandatory information and consultation procedures with employee representatives. The transaction is also subject to certain closing conditions and regulatory approvals, with closing expected for the second half of 2022. Borealis Group will continue to focus on its core activities of providing innovative and sustainable solutions in the fields of polyolefins and base chemicals and on the transformation towards a circular economy.

On February 15, 2022, the Iraqi Federal Supreme Court passed the Judgment that the Kurdistan Regional Oil & Gas Law (KROGL) of 2007 violates certain Articles of Iraq’s Constitution of 2005. The Judgment contradicts earlier analysis and also rulings. The Judgment challenges Kurdistan Regional Government’s (KRG’s) authority to enter into Oil and Gas Contracts with foreign parties and grants the Federal Ministry of Oil a right to follow up with foreign parties the way forward for these Contracts entered into. It is unclear how the Federal Government and KRG will proceed in respect of the above and settle this dispute. OMV is in process of assessing the matter, and it is too early to determine any implications on OMV’s 10% shareholding in Petroleum Company Limited.

On February 21, 2022, President Vladimir V. Putin of Russia signed decrees recognizing two pro-Russian breakaway regions in eastern Ukraine. Consequently, the European Union (EU), the United States of America (US) and the United Kingdom (UK) responded with targeted sanctions on Russian individuals and the Russian financial system. As a direct consequence, Germany halted the certification process of Nord Stream 2. One day later, the US announced sanctions targeting Nord Stream 2 AG and its corporate officers.

On February 24, 2022, Russia started a broad offensive in Ukraine with simultaneous attacks across various areas. The EU, the US and the UK imposed further sanctions including financing restrictions targeting certain Russian banks and state-owned companies like Gazprom. The EU announced the resolution on enactment of additional and more severe sanctions for Russia, specifically targeting inter alia the Russian banking system, Russian individuals and the energy and transport sectors. Gas supplies continued without interruption in line with the existing contractual obligations.

Russia continued the widespread attacks across Ukraine and intensified the attacks during the following days. The EU imposed sanctions against Vladimir Putin and Sergey Lavrov and announced further sanctions including but not limited to provision of loans and credits to certain listed banks and companies some of which are active in the oil business (like Gazprom Neft). The EU, the US and the UK decided to exclude seven banks from the SWIFT-System.

On March 1, 2022, the Executive Board of OMV has decided to not further pursue negotiations with Gazprom on the potential acquisition of a 24.98% interest in the Achimov 4A/5A phase development in the Urengoy gas and condensate field and to terminate the Basic Sale Agreement dated October 3, 2018. Furthermore, OMV will review its involvement in the Nord Stream 2 Pipeline.

In light of further sanctions, Russia announced countersanctions, in particular restrictions on dividend payments to foreign shareholders in Russian companies.

On March 4, 2022, the US, the EU and the UK imposed further property blocking sanctions on individuals and Russia enacted countersanctions including inter alia restrictions on sales of shares open or closed joint-stock companies. Russia also announced property blocking sanctions against foreign individuals and companies.

On March 5, 2022, the Executive Board of OMV took the decision not to pursue any future investments in Russia. The 24.99% interest in Yuzhno Russkoye will be subject to a strategic review. This review comprises all options including possibilities to divest or exit. As a consequence, OMV expects non-cash value adjustments of EUR 0.5 – 0.8 bn (as of December 31, 2021). In addition, OMV will recognize a non-cash value adjustment charge of EUR 987 mn (loan plus accrued interest as of December 31, 2021) due to the fact that receivables from Nord Stream 2 AG may be unrecoverable.

Overall, this means a non-cash value adjustment of EUR 1.5 to 1.8 billion that will impact the first quarter of 2022.

OMV continues to monitor the escalating crisis between Russia and Ukraine and regularly reviews the potential further impact on our business activities and assets. While OMV does not have operations in Ukraine, OMV has business relationships with Russian entities and shareholdings in Russia.

As of December 31, 2021, OMV reported the following values related to Russian operations:

Net assets

In EUR mn




Nord Stream 2 Loan


Reserve Redetermination Rights1






Total Net Assets



Related to Yuzhno Russkoye gas field in West Sibiria

Disruptions in Russian commodity flows to Europe could result in further increases in European energy prices and accelerate the risk of cost inflation. OMV imported on average 7.34  per month of natural gas under a long-term supply agreement with Gazprom to the German and Austrian gas hubs in 2021. From today’s point of view, OMV does not expect natural gas exports from Russia to stop. In the unlikely event of short-term gas supply disruptions from Russia, OMV can use the remaining gas in storage to supply customers and has access to other liquid gas market hubs in Europe. OMV has formed a Group Emergency Management Team (GEMT). This internal unit spans all relevant business areas and functions. The GEMT monitors, analyses and constantly assesses the latest situation in order to take any necessary decisions quickly and implement any measures without delay.

Pearl Petroleum Company Limited
net assets
Intangible assets, property, plant and equipment, equity-accounted investments, investments in other companies, loans granted to equity-accounted investments, total net working capital, less provisions for decommissioning and restoration obligations
Terawatt hour