European companies lose €100 billion in Russian quagmire: FT

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Europe's biggest companies reported a combined €100 billion loss from leaving Russia, report says

From February last year, companies have been pulling out their operations en-masse from the state in response to pressure from investors and consumers.

The FT's survey of 600 firms' financial reports showed that 176 of these have faced balance-sheet losses as a result of the sale, closure, or reduction in Russian business. Most of the losses were concentrated in a few heavily-exposed sectors such as energy and utilities. Three companies – BP, Shell and TotalEnergies – faced penalties of €40.6 billion. But the losses were more than covered thanks to higher energy prices which delivered bumper profits.

If energy and utilities were excluded from the survey, the largest writedowns come from Germany's chemical and automotive industries. , just over half of the 1,000 companies that pledged to leave Russia have managed to make a clean break with the country. The tracker was last updated August 7. "Even if a company lost a lot of money leaving Russia, those who stay risk much bigger losses," Nabi Abdullaev, partner at strategic consultancy Control Risks, told the FT."It turns out that cut and run was the best strategy for companies deciding what to do at the start of the war. The faster you left, the lower your loss."

 

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