The decision by Shell to leave Russia will cause it to take a hit of up to $5 billion in the first quarter of 2022.
After leaving Russia, Shell said it could write down as much as $5 billion.
In the first quarter of 2022, Shell said it expects a post-tax impairment of between $4 billion and $5 billion of assets and charges related to credit losses and contracts in Russia.
The company's earnings will be announced in early May, Shell said.
Shell shares fell in London.
The company said that it faces a hit of up to $25 billion for leaving Russia due to foreign exchange losses and abandoning its shares in Russian oil giant Rosneft.
ExxonMobil could lose as much as $4 billion in Russia for exiting a drilling project.
Patrick Pouyanne, the CEO of France's TotalEnergies, defended the company's refusal to write off its assets like some of its competitors, saying it would give them to Putin for free.
Shell bought oil from Russia at a discounted price in order to keep European fuel supplies stable. The company backtracked and apologized after it was criticized for buying Russian oil and gas. The spike in oil and gas prices has many companies expecting profits. Shell said oil trading earnings are expected to be higher than last quarter. The industry has been criticized by the U.S. lawmakers for alleged profiteering as Americans grapple with high fuel prices, with prices at the pump remaining high despite slipping crude prices.
The energy sector is not the only one that is exposed to Russia. Finance stands to lose billions. Citigroup warned it could lose $5 billion due to the war, while Jamie Dimon said the bank could lose $1 billion.
How much exposure Wall Street banks have in Russia is up for debate.
The insurance industry is bracing for huge payouts from the war in Ukraine.
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