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Investment thesis: As the economic divorce between the EU & Russia takes on the shape of being the new status quo for both sides, for the foreseeable future, BASF (OTCQX:BASFY) decided to write
BASF May Have To Write Down Some Or All EU Assets This Decade
Summary
- For now, BASF's European operations are mostly producing at reduced capacity or are temporarily idled.
- Many of its EU assets risk being written down, due to a lack of affordable and ample natural gas supplies to the EU market for the foreseeable future.
- For now, EU subsidies are keeping the chemical industry afloat. When it will stop helping companies cope with the high price of natural gas, BASF will most likely start divesting.
My name is Zoltan Ban, I have a BA in economics. I am a personal investor with over a decade and a half of active trading experience.
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