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Russia – Ukraine. How much are Western companies lost because of the sanctions?

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Foreign companies with branches in Russia lost 59 billion dollars due to sanctions. War and restrictions are other problems. Nearly a thousand more Western companies intend to withdraw from the Russian market, writes the Wall Street Journal.

Many companies are re-pricing their operations in Russiabecause the country’s weakening economy and the lack of Russian companies willing to acquire them make once-valuable assets worthless, writes the New York daily.

Western companies losses due to sanctions

Losses affect companies from a wide range of sectors – from banks, through retail, to restaurants and even wind turbine producers. The American giant McDonalds Corp., which sold its restaurants in Russia, recorded an accounting loss of $ 1.2-1.4 billion.

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Exxon Mobil lost $ 3.4 billion after operations in the far east of Russia were suspended.

Many companies have already agreed that they will suffer losses even before they are able to wind up their operations in Russia. British oil giant BP, which is gradually winding down its Russian assets, suffered an accounting loss of $ 25.5 billion in May.

Investors, however, do not seem overly concerned about the losses of multinational companies, as business in Russia accounted for a relatively small proportion of their earnings.

Some companies, such as British American Tobacco, have reported that they are winding down their Russian operations but have not yet recorded losses, or are waiting to report them until they can count them precisely, WSJ writes.

Main photo source: EPA / YURI KOCHETKOV



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