18 – Financial assets

The carrying amount of financial assets at fair value through profit or loss as of December 31, 2022, was EUR 3,063 mn (2021: EUR 4,941 mn). These mainly consisted of financial assets held for trading.

In 2021 it included also an acquired contractual position towards Gazprom with regard to the reserves redetermination in amount of EUR 432 mn in connection with the acquisition of interests in the Yuzhno Russkoye field. As OMV no longer expects the contractual position towards Gazprom to be recoverable, a fair value loss of EUR 432 mn was recognized in other operating expenses which reduced the fair value of this position to zero. For further details refer to Note 2 – Accounting policies, judgements and estimates, section ‘Impact of Russia’s invasion of Ukraine and related significant estimates and assumptions’.

In 2021, the position loans included drawdowns and the related accrued interests under the financing agreements for the Nord Stream 2 pipeline project in amount of EUR 987 mn. The total outstanding amount of EUR 1 bn including accrued interest as of March 5, 2022, was fully impaired, negatively impacting the financial result. For further details refer to Note 2 – Accounting policies, judgements and estimates, section ‘Impact of Russia’s invasion of Ukraine and related significant estimates and assumptions’.

The position loans in 2022 included drawdowns and the related accrued interests under a member loan agreement towards Bayport Polymers LLC in amount of EUR 657 mn (2021: EUR 987 mn). During 2022 the loan was partially repaid in amount of EUR 602 mn, partly offset by additional drawdowns made amounting to EUR 227 mn (2021: EUR 183 mn). For further details see Note 35 – Related Parties as well as Note 28 – Risk Management.

Other sundry financial assets included expenditure recoverable from Romanian State amounting to EUR 326 mn (2021: EUR 372 mn) related to obligations for decommissioning and environmental costs in OMV Petrom SA. The receivables consisted of EUR 318 mn (2021: EUR 352 mn) for costs relating to decommissioning and EUR 8 mn (2021: EUR 20 mn) for costs relating to environmental cleanup.

On March 7, 2017, OMV Aktiengesellschaft, as party in the OMV Petrom privatization agreement, initiated arbitration proceedings against the Romanian Ministry of Environment, in accordance with the International Chamber of Commerce Rules, regarding certain claims unpaid by this ministry for costs incurred by OMV Petrom relating to well decommissioning and environmental remediation works, amounting to EUR 58 mn. On July 9, 2020, the Arbitral Tribunal issued the Final Award on the arbitration and requested the Romanian Ministry of Environment to reimburse to OMV Petrom almost entirely the amount claimed and related interest. The amount of EUR 58 mn representing the principal and the amount of EUR 17 mn representing default interest were collected in 2021 and 2022, respectively.

On October 2, 2020, OMV Aktiengesellschaft, as party in the privatization agreement, initiated arbitration proceedings against the Romanian Ministry of Environment in accordance with the International Chamber of Commerce Rules, regarding certain claims unpaid by the Romanian Ministry of Environment in relation to well decommissioning and environmental restoration obligations amounting to EUR 31 mn. On August 30, 2022, the Arbitral Tribunal issued the Final Award on the arbitration and requested the Ministry of Environment to reimburse to OMV Petrom the amount of EUR 31 mn and related interest. In October 2022, the Ministry of Environment challenged the award in front of Paris Court of Appeal, procedure which is ongoing as of December 31, 2022.

Furthermore, in Q4/22, OMV Aktiengesellschaft, as party in the privatization agreement, initiated two other arbitration proceedings against the Romanian Ministry of Environment, in accordance with the International Chamber of Commerce Rules, regarding certain claims unpaid by this ministry in relation to well decommissioning and environmental remediation works amounting to EUR 47 mn. As of December 31, 2022, the arbitration procedure is ongoing.

Moreover, in 2022 this position included receivables related to insurance proceeds of around EUR 200 mn with regards to the incident at the crude distillation unit at the Schwechat refinery in June 2022.

Additionally, other sundry financial assets contained receivables towards partners in the Exploration & Production business as well as seller participation notes and complementary notes in Carnuntum DAC (see Note 36 – Unconsolidated structured entities – for further details).

For further details on the credit risk management see Note 28 – Risk Management.

Net remeasurement of expected credit losses was mainly related to the trade receivables from contracts with customers.