European companies incurred $110 billion in losses from operations in Russia since Moscow launched its military operation in Ukraine last year, the Financial Times reported.
A survey of major European companies showed that a total of 176 firms that posted annual reports for 2022 and financial statements this year recorded various losses from their Russian operations, FT said.
These losses include “asset impairments, foreign exchange-related charges and other one-off expenses as a result of the sale, closure or reduction of Russian businesses.”
Energy and utility groups registered more than half of the losses, with banks, chemicals, industrial, and automobile companies making up the rest.
In like manner, British, German, and French companies recorded the biggest losses, according to FT.
Analysts interviewed by the publication say Russia’s recent decisions to seize control of European corporations suggest “more pain ahead” for companies that chose to remain in Russia.
“Even if a company lost a lot of money leaving Russia, those who stay risk much bigger losses,” said Nabi Abdullaev, partner at the London-based global strategic consultancy Control Risks.
“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,” he added.
