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Companies count the cost of ditching Russia -Breaking


© Reuters. FILE PHOTO – A Henkel logo is shown before the company’s annual press conference, which took place in Duesseldorf on March 8, 2012. REUTERS/Ina Fassbender

(Reuters.) Multinationals have reported losses associated with their withdrawal from Russia and/or suspension of activity in Russia after Moscow invaded Ukraine on February 24, 2014.

This list includes firms that provide cost estimates in relation to Russia’s temporary and permanent halts.



In March, the German sportswear brand warned of sales losses due to Russian closures. However, it did not give an estimated amount. The country has 500 of the company’s total stores. According to the company, Ukraine poses a danger to sales up to 250million euros ($271 million), about 1 percent of its total for 2021.


LPP’s fourth quarter results, Poland’s largest fashion retailer, suffered a write-down of 335M Zloty (or $78 Million) that covered the closure of its Russian stores. Russia was LPP’s second largest market in 2021/2022. It accounted for 19.2% of the company’s full-year sales revenues. LPP believes that the closing of Russian stores and suspending business operations in Ukraine will result in a loss of 25% in revenue.

TJX (NYSE 🙂 The U.S. fashion retailer TJX announced that it will sell 25% of its stake in Familia, a Russian clothing shop chain with low prices. At the end January, the stake was worth $186 million. This is less than what TJX spent on it in 2019 at $225 million. TJX stated that it may need to report impairment as a result of divestiture in the event the Fair Value of Familia Investment falls below its carrying amount on the Balance Sheet.


RENAULT Renault (EPA:) In March, EPA stated that it had considered a 2.2-billion-euro ($2.38billion) non-cash writedown in order to cover the possible costs associated with Russia’s suspension of operations. In Q1, revenue lost due to sales was 166 millions euros, but Russia remains the second largest market for the company after France.


After suspending Russian activities that were equivalent to 3% of its group sales, the Swedish truckmaker stated on April 8 that it had put aside $423 million.


CITIGROUP According to the U.S. Bank, it estimates that its Russian exposures could cause a significant loss up to 3.0 billion in its quarter-end report. Citi claimed that its total Russian exposure has been reduced by $2.0billion to $7.8billion since December 2021. In the first quarter, Citi added $1.9 billion in reserves to protect itself from losses from Russia’s direct exposures.

CREDIT SUPISSE On April 20, the Swiss Bank estimated that the Russian invasion in Ukraine would cost them 200 million Swiss Francs (or $209 million). This figure is for Q1 2022.

SOCIETE GENERAL The French bank declared it would leave Russia and write down 3.1 billion euros (or $3.35 billion) that was earned from its Rosbank unit sale to Interros Capital. This amount includes a 2Billion-euro loss on Rosbank’s books and the remainder is tied to the reverse of rouble currency conversion reserves.

UBS On April 26, UBS, a Swiss bank stated that Russia’s invasion in Ukraine cost about $100 million. UBS also reduced its Russian exposure to $400 Million at March’s end, down from $600,000,000.


ESSITY After it had shut down Russian production in March, the Swedish hygiene product group announced that it would report a writedown of 1.4 Billion crowns ($147.66m). It generated approximately 2% of the total country’s sales last year. This was 2.8 billion crowns, or $295 million.


In its quarterly report, the German chemical- and consumer goods firm stated that it sees a 1 billion euro impact on full year sales due to current geopolitical conditions.

Persil detergents and Pritt glue were announced by the maker in April. On Friday, it added that it was also leaving Belarus.


After discontinuing the sale of many Marlboro and Parliament cigarettes products in Russia, Philip Morris (NYSE:) took 3 cents per share for Q1’s Ukraine crisis. Philip Morris (NYSE) Q1 earnings dropped 3.6% to $2.32 Billion, or $1.50 per Share, which includes the 3-cent fee. Russia generated more than $1.8 billion in revenue last year. That’s approximately 6% its worldwide sales.



According to the CFO of the company, earnings and production will be affected by Russia’s oil giant. The decision to stop oil and gas operations in Russia would affect earnings. Exxon Mobil The Russian oil and natural gas assets of (NYSE:) were worth more than $4B. After-tax losses of $3.4 billion on Russia Sakhalin-1 were part of the first quarter’s results.


On April 8, the Austrian energy company stated that it will take a 2Billion euro hit in its first quarter due to Russia’s pullback. This would be split equally between the Nord Stream 2 pipeline connection and the adjustments made to the consolidation process of two Russian entities.


Following its exit from Russia, the largest liquefied trading company in the world will have to write off $5 billion. That’s more than the $3.4 million previously disclosed. This was in addition to potential consequences around contracts and writedowns receivables as well as credit losses.



Swedish engineering company has suspended all Russian orders. It stated that 602million Swedish crowns (or $62 million) of orders had been cancelled by sanctions. It also booked 327million crowns worth of provisions in order to pay various costs related with existing Russian contractual obligations.


According to the Finnish engineering company, it had to write down 79 million euro in Russian orders in its first quarter. The company also cancelled 32million euros (34.62 millions) in sales to Russia, which had a negative impact on the quarter’s operating profits by around 39 million.

SRV A Finnish construction company announced that on April 28th, it had sold all its Russian assets. The remaining Russian assets are worth 2.6 million Euros ($2.73 Million). As the decrease in asset values ​​will have a significant impact on SRV’s equity and equity ratio, the company announced a programme to reorganize its financing, including a contemplated rights issue and conversion of its unsecured fixed-interest bond.


The Finnish engineering company Valmet has decided that several projects they delivered to Russia do not meet the requirements of customer contracts for revenue recognition and made an order reversal in the amount of 70 million euros.

WARTSILA A 200 million Euro write-down was recorded by WARTSILA, a Finnish engineering company. This is as the group reduces its Russian business. It includes 75m euros in impairment of Voyage associated goodwill, intangibles, 50m euros in impairment related assets in Russia and 75m euros in write-downs related project and receivables that are trade-sanctioned. Although the negative effect on company’s operating results is not significant, it has a detrimental impact on its financial operations.

Russia-related activity accounted for approximately 5% Wartsila’s net sales 2021. Service net sales were about 40 millions euros.


In the first quarter of 2018, the Finnish construction company suffered an impairment amounting to 133 million Euros. This was due to the Russian business being classified as for sale. YIT declared in April that it was selling its Russian business to Etalon Group.



According to the global streaming giant, the decision to stop services in Russia on April 19, resulted from the 700,000 member loss. This is the company’s first drop in subscribers in more than 10 years.



Belgian brewer InBev Efes announced it will sell its Russian non-controlling share in its joint venture AB InBev Efes on 22 April. In the first quarter, there will be a $1.1 million impairment charge. There are 11 Russian and three Ukrainian beer breweries within the joint venture.


A Danish beer maker stated that the sale of its Russian business would cause a write down of around 9.5 billion crowns (1.4 billion). It generated 10% of the company’s revenue in Russia and 6% in operating profit there in 2021. The company also stated that it expects 300 million Ukrainian crowns to be impaired charges and goodwill writedowns totaling 700 million crowns in the Central and Eastern Europe region.

HEINEKEN NV In late March, the Amsterdam-based brewer determined that Russia’s ownership was no longer viable or sustainable. Heineken (OTC) stated that it would not benefit from the transfer of ownership. It expects impairment and non-cash extraordinary charges totaling about 0.4 billion Euros ($432.96 Million).


McDonald’s (NYSE 🙂 stated in March that closing its Russian outlets would result in a loss of $50 million per month. From its worldwide total of more than 38,000, the company has 847 locations in Russia. Brokerage Piper Sandler predicts that Russia’s closure of operations will result in earnings per share reaching $1.19 in 2022.



American Toymaker warned of potential revenue losses of $100 million in the wake of its April 19 decision to stop Russian toys shipments.



Swedish equipment manufacturer for gardening said that April 21 the company had suffered write-downs totalling 119 million crowns ($12.6million) as a consequence of Russia stopping any exports. Russia represented 1.5% of the group’s sales in 2021.


Finnish mining solution provider, Finnish Mining Solutions, stopped Russian deliveries in March. It stated that Russian clients have operative assets worth approximately 100 million euros ($109 million). If it fails to manage existing contracts, this could put the company at serious risk. The Russian market accounted for 10% of company revenue. In March, the company added that it held 269 millions euros in advance payment guarantees related to Russian exports.


Swedish bearings-and seal manufacturer, Swedish Bearings and Seal Maker announced on April 22 that Russia will be closed and it plans to exit its Russian operations. In the second quarter, the decision results in a writedown of 500 million Swedish Crowns ($52.70million). Russian sales made up about 2% in total Group sales for 2021.


On April 26, the Swedish steelmaker stated that concerns regarding its Russia sales office had resulted in asset writedowns totalling 158 million Swedish Crowns (or $16.23million) in Russia. Fennovoima’s prospects in Finland were also affected by the sanctions and war. The shares of the project, which was worth 272 million crowns, were reduced to zero. SSAB has stopped direct sales to Russia or Belarus and also discontinued any new purchases of coal and ore from Russia until further notice.

STORA ENSO On April 25, the Finnish forestry firm announced that it had sold its Russian sawmills to local management. This resulted in an impairment of approximately 70 million Euros ($75 Million) for Q1. The transaction also triggered an additional loss of 60 million Euros under IFRS accounting regulations upon close of the deal.

It had stated previously that the company would cease production and sell in the country. About 3% of all group revenue came from Russia.

($1 = 0.9243 euro)

($1 = 6.8341 Danish crowns)

($1 = 4.2921 zlotys)

($1 = 0.9565 Swiss franc)

($1 = 9.7480 Swedish Crowns