17 – Related party transactions

The BASF Group maintains relationships with several related parties that can exert influence on the BASF Group or over which the BASF Group exercises control or joint control, or a significant influence. The following tables show the scope of the Group’s transactions with related parties.

Sales to related parties include contributions from the discontinued oil and gas business for the period from January 2018 to April 2019.

Sales from joint ventures with BASF Group companies amounted to €326 million in the first half of 2019, and €253 million in the first half of 2018. Sales from associated companies with companies in the BASF Group amounted to €319 million in the first half of 2019, and €254 million in the first half of 2018.

Sales and trade accounts receivable from and trade accounts payable to related parties mainly included business with own products, merchandise, agency and licensing businesses, and other operating businesses.

Other receivables and liabilities primarily arose from financing activities, from accounts used for cash pooling, outstanding dividend payments, profit and loss transfer agreements, and other finance-related and operating activities and transactions.

In the first half of 2019, valuation allowances of €1 million were expensed for trade accounts receivable from associated companies. There were no valuation allowances recognized as an expense in the prior-year period.

The balance of valuation allowances for trade accounts receivable from related parties amounted to €5 million as of June 30, 2019, compared with €13 million as of December 31, 2018. Valuation allowances for other receivables from related parties declined from €77 million as of December 31, 2018, to €22 million as of June 30, 2019. In both cases, the decrease was attributable to the deconsolidation of the Wintershall companies on April 30, 2019.

Since the merger of the paper and water chemicals business with Solenis as of February 1, 2019, the sales, receivables and trade accounts payable as well as other liabilities to the Solenis group have been included in associated companies in the tables below.

Since May 1, 2019, following the merger of the oil and gas businesses of Wintershall and DEA, the sales, receivables and trade accounts payable to Wintershall Dea have been included in joint ventures in the tables below.

There were no reportable related-party transactions with members of the Board of Executive Directors or the Supervisory Board and their related parties during the reporting period.