Analysis- Loss of foreign companies due to exit from Russia tops $107 billion

By Alessandro Parodi and Alexander Marrow

(Reuters) – Corporate flight from Russia has cost foreign companies more than $107 billion in losses and revenue since the invasion of Ukraine in 2022, a Reuters analysis of company filings and statements found. Is.

The size of the losses has increased by a third since the last count in August last year, underscoring the scale of the financial loss to the corporate world from Moscow’s aggression, as well as the sudden loss of Western expertise from Russia’s economy. Also exposes.

“As Russia’s aggression continues amid a decline in Western military aid, and the severity of the Western sanctions regime increases, there are still more difficulties for companies aiming to exit Russia,” said Ian Massey, head of corporate intelligence. They will have to face higher writedowns and losses.” EMEA, at global risk consultancy S-RM.

President Vladimir Putin, after securing re-election in a landslide victory widely condemned in the West as unfair and undemocratic, is now seeking new measures to pursue isolation from the West, including additional asset seizures and political pressure, Massey said. A clear mandate has been given.

Moscow demands a discount of at least 50% on sales of foreign assets and has steadily tightened exit requirements, often accepting nominal fees of less than a ruble.

Sales of assets owned by Shell, HSBC, Polymetal International and Yandex NV have been announced so far this year, totaling about $10 billion and at discounts of up to 90%. Last week, Danone said it had received regulatory approval to dispose of its Russian assets, bringing the total to $1.3 billion.

Nearly 1,000 companies have exited, although hundreds, including French retailers Auchan and Benetton, are still operating or have halted operations,…

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