The Direct Losses of European Companies Exceed 100 Billion Euros from Withdrawing from the Russian Market: Financial Times Report

European Companies Lose Over 100 Billion Euros Due to Withdrawal from Russian Market

Direct losses of European companies amounted to more than 100 billion euros due to their withdrawal from the Russian market since the start of the special operation in Ukraine at the end of February 2022.

Losses Revealed in Financial Times Report

The loss suffered by European companies revealed the report of the British newspaper Financial Times, which analyzed the data of the largest European companies over the past year and a half.

According to the publication, during this period, 176 European companies faced “a doubling of assets, foreign exchange costs and other one-time costs in connection with the sale, closure or reduction of the Russian part of their business.”

Meanwhile, the analysis does not take into account indirect macroeconomic factors, such as the rise in the cost of energy resources and other products, on Western sanctions against Russia after the special operation in Ukraine.

Financial Times experts noted that European business “will face more pain in the future” against the background of the transfer to temporary management of the share of foreign owners in the Russian structure of the Danone dairy plant and the Baltika brewing company. Federal Property Management Agency.

In turn, the Kiev School of Economics indicated that half of the 1900 companies affiliated with European institutions continue to work in Russia.

The newspaper confirmed that oil and gas companies suffered the biggest losses after leaving the Russian market, as the combined losses of BP, Shell and Total Energy amounted to 40.6 billion euros. However, due to the global increase in energy prices, listed companies did not face financial difficulties: last year they recorded a record total profit of 95 billion euros.

As for companies operating in the industrial sector, including the automotive industry, their losses in the Russian market amounted to 13.6 billion euros, while financial companies, in particular banks, recorded write-offs and other expenses in the amount of 17.5 billion euros.

Source: TASS

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