Financial Times: Heavy losses incurred by European companies due to their withdrawal from the Russian markets

London, (ST) – The British Financial Times revealed that direct losses incurred by European companies due to their withdrawal from the Russian market are estimated at 100 billion Euros.

In a study, the newspaper indicated that about 176 companies recorded a decrease in the value of assets and costs related to currency exchange, and oil and gas companies incurred the largest losses, and the total losses of British Petroleum, Shell and Total Energies amounted to 40.6 billion Euros.

Industrial companies, including automakers, lost 13.6 billion Euros, and financial companies, especially banks, recorded different expenses estimated at 17.5 billion Euros.

The newspaper pointed out that more than 50 percent of the 1871 European-owned entities in Russia before the special military operation in Ukraine are still operating in the country, including the Swiss Nestlé and the British Unilever.

The heaviest costs of withdrawal are concentrated in a few exposed sectors, such as oil and gas groups such as BP and Shell, and the financial sector, including banks, insurance and investment companies, also suffered heavy losses.

Western countries, led by the United States and the European Union, imposed severe sanctions on Russia, under the pretext of the special military operation, affecting the sectors of energy, finance, trade, arts, culture and sports, the latest of which was the tenth package of sanctions that included banning the transfer of European goods through Russia and dual-use technologies. There are also media organizations such as the Rossiya Segodnya Foundation, writers, broadcasters and officials of TV channels and media groups.

Raghda Sawas