Capitals: Europe and the Arabs
The Financial Times said that the largest companies in Europe have suffered direct losses estimated at least 100 billion euros from their operations in Russia since the start of the Ukrainian war, according to an analysis conducted by the newspaper.
The newspaper pointed out that a survey of 600 annual reports of European groups and financial statements for 2023 showed that 176 companies recorded a decrease in the value of assets, foreign exchange-related fees, and other one-time 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. The war also led to an increase in the profits of oil and gas groups and defense companies. According to the publication of the Seventh Day website in Cairo on Monday
Analysts say Moscow's decision to take control of the Russian business of gas suppliers Fortam and Juniper in April, followed by the seizure of Danone and Carlsberg last month, points to more losses to come.
The newspaper went on to say that more than 50% of the 1,871 European-owned entities in Russia before the war are still operating in the country, according to data from the Kiev School of Economics. European companies still present in Russia include Switzerland's Nestle and Britain's Unilever.
Even if a company loses a lot of money leaving Russia, those who remain face bigger losses, said Nabi Abdallah, a partner at the risk management consultancy. It turned out that fleeing was the best strategy for the companies that decided what to do when the war began. The sooner you leave, the lower the losses.
The largest losses of the withdrawal were concentrated in a limited number of sectors. Such as Shell, BP and Total companies in the field of oil and gas, and the three companies together recorded fees amounting to $ 40.6 billion. The losses were large due to the high oil and gas prices.