As Western sanctions intensify and Western military aid declines, companies still seeking to exit Russia are likely to face further difficulties and be forced to accept major losses and losses.
Analysis of company reports showed that the exit of companies from Russia following the invasion of Ukraine in 2022 caused more than $107 billion in lost revenues and write-offs to foreign companies. Reuters reports this.
The volume of losses has increased by a third since the last count in August last year. This shows the extent of the financial blow that the attack on Ukraine brought to the corporate world and also points to the sudden loss of Western experience in the Russian economy. As Western sanctions tighten and Western military aid declines, companies that still want to exit Russia will likely face more difficulties and have to accept greater losses and losses, experts say.
Important
Moscow demands at least a 50 percent discount on the sale of foreign assets and is constantly tightening conditions for exiting the country. The Russian Federation generally accepts only a nominal fee of one ruble.
In 2024, the sale of assets belonging to Shell, Polymetal International, HSBC and Yandex NV was announced. It was announced that the cost would be approximately 10 billion dollars with discounts of up to 90%. Last week, Danone announced that it had received regulatory approval to sell its assets in Russia and lost a total of $1.3 billion.
About 1000 companies have already left the Russian market. Hundreds of companies, including French retailer Auchan and the Benetton group, are still operating here or have suspended business, according to an analysis by the Yale School of Management.
Let us recall that on March 22, Estonia offered to transfer all frozen assets of Russia to ensure the defense of Ukraine. The head of the country’s Ministry of Foreign Affairs admitted that EU countries are not interested in using these funds.
Source: Focus
John Holton is a seasoned author and journalist, known for his expertise in economics. He currently works as a writer at 24 news breaker, where he provides readers with in-depth analysis and commentary on the latest economic developments. With a background in finance and a talent for explaining complex economic concepts in a clear and accessible way, John’s writing is a must-read for anyone interested in staying informed about the economy.