Explainer-Can companies leaving Russia recoup losses through insurance?

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Hundreds of companies have said they are withdrawing or suspending operations in Russia after its invasion of Ukraine, from energy producer Shell Plc to carmaker Hyundai Motor Co to PwC, a global professional services firm.The following is a look at how insurance and international arbitration might soften

Hundreds of companies have said they are withdrawing or suspending operations in Russia after its invasion of Ukraine, from energy producer Shell Plc to carmaker Hyundai Motor Co to PwC, a global professional services firm.

Much of the insurance is written by non-commercial agencies such as the Overseas Private Investment Corp of the United States and the Multilateral Investment Guarantee Agency, part of the World Bank.Companies that leave and abandon their business without any action taken by the Russia government to seize control of their assets will have a tough time collecting insurance, according to legal experts.

Air Lease Corp said earlier this month the Russian law demonstrates Moscow's intent to confiscate planes and the company expected the move to help the company collect on its insurance. The Steptoe & Johnson law firm said last week in a note to clients that classic international arbitration claims include failure to protect intellectual property rights, refusal to release aircraft and expropriation of assets.

 

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Yes and make profit even.

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