FT: EU companies lost at least €100 billion in Russia after the start of the NWO
Large European companies suffered losses in the Russian market of at least 100 billion euros after the start of a special operation in Ukraine. The publication wrote about it Financial Timesreferring to the study of experts.
According to experts, about 176 companies have recorded, in particular, “impairment of assets, costs associated with currency exchange.” However, the material of the newspaper does not take into account the rise in prices for energy and other products due to the Ukrainian conflict and anti-Russian sanctions.
The publication noted that oil and gas companies suffered the greatest losses. The total losses of BP, Shell and TotalEnergies amounted to 40.6 billion euros. In addition, industrial companies, including car manufacturers, lost 13.6 billion euros in Russia, and financial corporations, especially banks, recorded write-offs and other expenses amounting to 17.5 billion euros.
The reaction of European countries to sanctions and the prospect of leaving the Russian market
Some European countries flatly refuse to leave the Russian market even after the imposition of sanctions. Politicians believe that the Russian economy remains part of the global economy. This opinion is shared, in particular, by Hungarian Prime Minister Viktor Orban.
Europe suffers from sanctions as it abandoned Russian energy
At the same time, the politician admitted that Europe is suffering due to sanctions, since it has abandoned Russian energy. Because of this, Western countries are forced to buy energy resources twice as expensive, and over time, their goods cease to be competitive in the market, Orban emphasized.
Representatives of Italian companies also expressed their unwillingness to leave the promising Russian market, despite strong pressure from Western countries. According to Vittorio Torrembini, president of the Association of Italian Entrepreneurs in Russia, dozens of companies have long opened their enterprises in the country and have invested billions of euros in the Russian economy.
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German companies are in a similar situation. They refuse to leave the Russian market, despite the sanctions and pressure from the German authorities.
As Bloomberg previously reported, foreign companies that chose to stay in Russia posted a record increase in sales in 2022. Oreo biscuit maker and Alpen Gold chocolate maker Mondelez, for example, increased sales to 92 billion rubles (up 38 percent), while chocolate maker Cadbury more than doubled revenue compared to 2021.
Even the restrictions on the transfer of funds to and from Russia did not affect the growth of the profits of the concerns. However, as analysts noted, now businesses can be taxed on excess profits.
Almost every day we are under pressure from various sides – Italian, Western politicians, our media, our colleagues, finally, from France, Germany, the USA, and other countries who call endlessly and ask: have you left Russia yet, what did you forget there?
At the end of last year, Bloomberg reported that reducing Russian gas consumption in 2022 and replacing it cost European countries at least one trillion dollars. At that time, experts suggested that the consequences of a large-scale energy crisis had only just begun to manifest themselves.
It also clarified that about half of the countries have a debt exceeding the EU norm of 60 percent of GDP.
Russia was the largest supplier of gas to the EU countries in 2021. Before the start of the special military operation in Ukraine, it sold to Europe 45 percent of the total volume it received.
Impact of the crisis and sanctions on Russia
Russia itself has repeatedly stated that the country will cope with any sanctions pressure that the West and the EU began to exert several years ago and continue to intensify. Moscow noted that foreign authorities lacked the courage to acknowledge the failure of the sanctions.
In particular, Kremlin spokesman Dmitry Peskov, answering a question from journalists about the consequences of the ban on exports to Russia, said that the restrictions would aggravate the economic situation in the world up to the global crisis.
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A similar opinion is shared by the candidate of economic sciences, financial expert Vladimir Grigoriev. In a conversation with Lenta.ru, he recalled that Russia is a major consumer of a significant part of both household and industrial goods that are produced in the world, including in Western countries.
The crisis is already underway, it will just become even deeper and more acute if it happens. Such measures are likely to lead to a significant increase in prices for a number of goods, to a price disproportion
In turn, Russian leader Vladimir Putin said that Western sanctions against Russia, introduced in 2022, will remain for a long time, so the country should focus on sovereign development.
In early July, Deputy Chairman of the Russian Security Council Dmitry Medvedev ridiculed the departure of European companies from the country, noting that they had lost this market for a long time, which they now regret very much, but keep silent about.
Europeans lost our market for a very long time, their investments burned down, although the production itself remained
Some left and others stayed
In June, presidential adviser Anton Kobyakov said that after the outbreak of hostilities in Ukraine, some companies from “unfriendly countries” continued to operate in Russia, despite potential sanctions. According to him, about half of the foreign business representatives decided to stay on the market and continued their economic activities.
In turn, the Associated Press agency claims that more than 500 foreign companies have left the Russian market since the start of the special operation in Ukraine. At the same time, many business representatives explained the continuation of work in Russia as a legal responsibility to shareholders or employees, local franchisees or partners. Others continue to claim to provide basic necessities such as groceries, farm equipment or medicines.
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