Transnational enterprises lost $59 billion in Russia, and losses are set to expand further

According to a report on June 11th, the Wall Street Journal (WSJ) analyzed public information and the announcement of the U.S. Securities and Exchange Commission (SEC) on June 10th and said that multinational companies have lost a total of more than 59 billion U.S. dollars in business related to Russia. Considering the Russian economy has been shaken by Western sanctions following Russia’s invasion of Ukraine, the number of companies closing their doors in Russia is increasing, and this financial loss is expected to widen further.

According to the Yale University research group, taking the invasion of Ukraine as an opportunity, there are nearly 1,000 Western European companies that have promised to completely withdraw from the Russian market or reduce their Russian businesses. WSJ said that most companies re-evaluate the value on the books of Russian domestic businesses and depreciate assets that have declined in value.

For instance, McDonald’s expects an accounting loss of $1.2 billion to $1.4 billion. Big oil company Exxon Mobil took a $3.4 billion loss. Anheuser-Busch, the beer company known as Budweiser, lost $1.1 billion. Irish aircraft leasing company Aircap lost a combined $2.7 billion on the books, including more than 100 aircraft. British energy company BP incurred $25.5 billion in losses from handling assets in Russia, etc. Even companies that maintain domestic business in Russia have not been able to avoid losses from falling asset values.

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Translator: MOS English Team – Wenqin

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