Losses of companies which exited from Russia reaches $240 bln
It is noted that businesses from the US, the UK and Germany reported the biggest losses in monetary terms, though if calculated per GDP such losses most of all affected the economies of Finland, Sweden, the UK and Denmark
Losses from foreign companies that exited the Russian market or limited operations here are estimated at $200-240 bln since the end of February, the Center for Strategic Research said in a report.
“Foreign companies that limited operations or announced their withdrawal from the Russian market have already lost between $200 bln to $240 bln since the end of February, of which $70 bln to $90 bln is attributed to businesses that decided to leave Russia,” the report said.
Businesses from the US, the UK and Germany reported the biggest losses in monetary terms, though if calculated per GDP such losses most of all affected the economies of Finland, Sweden, the UK and Denmark, experts said.
Meanwhile, companies that announced their exit from Russia with transfer of local divisions to new owners lost 23% more than those exiting without transferring business in the country to new owners. That said, losses of those selling or planning to sell Russian divisions are 19% lower on average than those of businesses limiting their operations in Russia.
This is due, in particular, to notable discounts on the sales and purchases of Russian divisions of foreign businesses, which according to CSR estimates, are on average about 70%..
In terms of sectors, foreign businesses operating in the oil and gas sector, banking, auto manufacturing, and food industry sustained the highest losses, the report said.
As of September 9, 2022, 34% of large foreign companies previously operating in Russia restricted their activities, 15% decided to exit the country through transfer of the Russian division to a new owner, and only 7% announced withdrawal from the local market without transferring the local division, according to the report. That said, 44% of companies continue working as normal.
Companies from Finland, Denmark and the UK most actively announced their exit from the Russian market, with 80%, 73% and 35% of the firms having decided to leave the country, respectively. A relatively small share of Austrian companies did so (8%), same as Japanese (14%) and Swiss (16%) firms.
