Business Losses From Russia Top $59 Billion as Sanctions Hit

By Oscarjack 3 Min Read

Nearly 1,000 Western companies plan to leave the country or cut back operations, with more write-downs expected

The Moscow International Business Center. Companies taking write-downs on Russian operations range from banks and brewers to manufacturers, retailers, restaurants and shipping companies.

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The write-downs to date span a range of industries, from banks and brewers to manufacturers, retailers, restaurants and shipping companies—even a wind-turbine maker and a forestry firm. The fast-food giant McDonald’s Corp. expects to record an accounting charge of $1.2 billion to $1.4 billion after agreeing to sell its Russian restaurants to a local licensee; Exxon Mobil Corp. took a $3.4 billion charge after halting operations at an oil and gas project in Russia’s Far East; Budweiser brewer Anheuser-Busch InBev SA took a $1.1 billion charge after deciding to sell its stake in a Russian joint venture.

“This round of impairments is not the end of it,” said Carla Nunes, a managing director at the risk-consulting firm Kroll LLC. “As the crisis continues, we could see more financial fallout, including indirect impact from the conflict.”

Some companies are writing off assets stranded in Russia.  The aircraft were leased to Russian airlines. Other leasing companies are taking similar hits.

to divest its Russian assets.https://www.greenmesquitebbq.com/profile/jurassic-world-3-123movies-google/profile

BP’s $25.5 billion accounting charge on its Russian holdings include writing off $13.5 billion of shares in oil producer Rosneft.
PHOTO: YURI KOCHETKOV/EPA/SHUTTERSTOCK
Even some companies that are retaining a presence in Russia are writing down assets. The French energy giant TotalEnergies SE took a $4.1 billion charge in April on the value of its natural-gas reserves, citing the impact of Western sanctions targeting Russia.

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A BNY Mellon spokesman declined to comment.

 

Financial markets are “rewarding companies for leaving Russia,” a recent study by Yale School of Management found.

Russia 

Accounting specialist Jack Ciesielski said companies might hold off announcing a write-dw big the loss will be.

The ruble’s recovery is helping Russia prop up its economy and continue its Ukraine war effort. WSJ’s Dion Rabouin explains how Russia boosted its ailing currency and how it is affecting the global economy. Illustration: Ryan Trefes
Many companies are giving investors rough estimates about what to expect on Russia-related losses.

Uber said in February it was looking for opportunities to accelerate its planned sale of the stake.

—Thomas Gryta and Nick Kostov contributed to this article.https://www.raceofchampions.com/profile/jurassic-world-dominion-2022-online-for-free/profile

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