Major European companies have suffered direct losses of at least 100 billion euros, as a direct repercussion of the Russian invasion of Ukraine, according to an analysis by the newspaper “Financial Times” British.
A survey of 600 European groups showed that 176 companies recorded a decrease in the value of assets, foreign exchange fees and other expenses, as a result of the sale, closure or downsizing of Russian businesses.
The total figure does not include indirect macroeconomic effects of the war, such as higher energy and commodity costs.
And more than 50 percent of the 1,871 European-owned entities in Russia before the war “are still operating in the country,” according to data compiled by the Kiev School of Economics.
“Even if a company loses a lot of money when leaving Russia, staying means risking much bigger losses,” says Nabi Abdullah, partner at Control Risks, a strategic consultancy. “The sooner you leave, the less you lose.”
The heaviest costs of the withdrawal are concentrated in a few “exposed sectors”, such as oil and gas groups, where 3 companies, “BP, Shell and TotalEnergies”, reported losses of 40.6 billion euros.
But higher oil and gas prices “overshadowed the losses” and helped these groups achieve total profits of around 95 billion euros ($104 billion) last year.
The utilities sector received losses of 14.7 billion euros, while industrial companies, including carmakers, suffered losses of 13.6 billion euros.
The financial sector, including banks, insurance and investment companies, received losses of approximately 17.5 billion euros.
According to the “Financial Times”, the groups that are still operating in Russia are taking a “high-risk risk,” noting that “it is almost impossible for European companies operating there to obtain any profits,” considering that “it is still better for them to leave.” the country.”
2023-08-07 07:24:30
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