Shell expects losses of up to $5 billion due to its exit from Russia

• Shares of the oil giant fell 1.9% in early trading in London

British oil giant Shell Plc said it expects accounting losses of around $5 billion in the first quarter due to the suspension of its operations in Russia.

This comes ahead of Shell’s quarterly earnings scheduled to be announced in May. The company said it still expects strong first-quarter earnings in its large liquefied-natural-gas business and from oil and gas trading.

The accounting charges also include the possibility of unpaid contracts and other credit losses, indicating the impact on companies due to suspending services in Russia.