Western companies face $107 billion loss exiting Russia: Reuters analysis
Following Russia's invasion of Ukraine, numerous enterprises from Europe and the USA chose to exit the Russian market. Reuters’ latest analysis reveals that these companies faced nearly $107 billion in losses, confiscated by Russian authorities. The withdrawal was further complicated by Moscow's adverse decisions, severing ties with the West.
3:44 PM EDT, March 31, 2024
After Ukraine was attacked, several Western companies operating in Russia decided to cease their operations there. In some instances, forceful sales at significantly lower prices were necessitated by decisions from Moscow's authorities.
According to recent findings by Reuters, by the onset of 2024, Western corporations leaving the Russian market incurred total losses amounting to approximately $107 billion, funds appropriated by the Russian side.
In the wake of Western companies pulling out, the Russian government introduced steep financial demands on them.
One agency noted that a business forced to sell its assets had to accept a minimum 50 per cent discount. This often meant leaving behind factories or stores with their equipment for merely a "symbolic ruble," affecting, among others, the French car manufacturer Renault.
The most significant markdowns were observed in companies like Shell and the Russian-owned Polymetal, which included Western shareholders in its leadership.
Nevertheless, many Western companies chose not to withdraw from Russia. Among them are Auchan and Nestle. An American university at Yale has compiled a so-called "list of shame," featuring dozens of companies from Western Europe and the USA.
Reuters highlights that the exit from the Russian market will prompt companies to face additional billions in losses.
One of the most extreme measures taken by Russian authorities against Western enterprises is temporary nationalization, as seen in Carlsberg’s case.
