European companies lost more than 100 bln euro on Russian market

European companies lost more than 100 bln euro on Russian market

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European companies lost more than 100 bln euro on Russian market

“Financial companies including banks, insurers and investment firms, have recorded €17.5 bln in write-downs and other charges,” FT said.

Direct losses of European companies in the Russian market amounted to at least 100 bln euro after the start of the special military operation in Ukraine, The Financial Times (FT) newspaper reported.

“A survey of 600 European groups’ annual reports and 2023 financial statements shows that 176 companies have recorded asset impairments, foreign exchange-related charges and other one-off expenses as a result of the sale, closure or reduction of Russian businesses,” FT said. “The aggregate figure does not include the war’s indirect macroeconomic impacts such as higher energy and commodities costs,” it noted.

“The heaviest costs of withdrawal are concentrated in a few exposed sectors. Those with the biggest write downs and charges are oil and gas groups, where three companies alone — BP, Shell and Total Energies — reported combined charges of €40.6 bln,” the newspaper reported, adding that losses were outweighed by huge aggregate profits because of the rise in oil and gas prices. Losses of industrial companies, including automakers, stood at 13.6 bln euro.

“Financial companies including banks, insurers and investment firms, have recorded €17.5 bln in write-downs and other charges,” FT said.