LONDON: Direct losses of European companies in the Russian market amounted to at least 100 bln euro after the start of the special milita...
LONDON: Direct losses of European companies in the Russian market amounted to at least 100 bln euro after the start of the special military operation in Ukraine, The Financial Times (FT) newspaper reported.
"A survey of 600 European groups’ annual reports and 2023 financial statements shows that 176 companies have recorded asset impairments, foreign exchange-related charges and other one-off expenses as a result of the sale, closure or reduction of Russian businesses," FT said. "The aggregate figure does not include the war’s indirect macroeconomic impacts such as higher energy and commodities costs," it noted.
"The heaviest costs of withdrawal are concentrated in a few exposed sectors. Those with the biggest writedowns and charges are oil and gas groups, where three companies alone — BP, Shell and TotalEnergies — reported combined charges of €40.6 bln," the newspaper reported, adding that losses were outweighed by huge aggregate profits because of the rise in oil and gas prices. Losses of industrial companies, including automakers, stood at 13.6 bln euro.
"Financial companies including banks, insurers and investment firms, have recorded €17.5 bln in writedowns and other charges," FT said.
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