Foreign companies incurred losses exceeding $107 billion due to writedowns and lost revenue, following the corporate departure from Russia after its 2022 war against Ukraine, Reuters reported on Thursday. The losses have increased by a third since the last count in August of the previous year, highlighting the sudden loss of Western expertise from Russia's economy. Ian Massey, Head of Corporate Intelligence, EMEA, at global risk consultancy S-RM, warned that as Russia's invasion continues and Western sanctions become more detailed, companies aiming to exit Russia will likely face further difficulties and greater writedowns and losses. Following his re-election, Russian President Vladimir Putin, whose victory was widely criticised in the West as unfair and undemocratic, now has a renewed mandate to pursue further isolation from the West, including through additional asset seizures and political pressure. Moscow has been demanding at least a 50 per cent discount on foreign asset sales and has been steadily tightening exit requirements, often accepting nominal fees as low as one rouble. This year, asset sales by Shell, HSBC, Polymetal International, and Yandex NV have been announced, totaling nearly $10 billion and at discounts as high as 90 per cent. Danone recently received regulatory approvals to dispose of its Russian assets, taking a total loss of $1.3 billion. Approximately 1,000 companies have exited Russia, including Austrian brickmaker Wienerberger, which sold its Russian factories. However, hundreds of companies, including French retailers Auchan and Benetton, are still operating or have put their businesses on hold there, according to an analysis by the Yale School of Management.
