Companies Calculate the Cost of Exiting Russia

Companies Calculate the Cost of Exiting Russia

These are among the biggest names or highest costs incurred by companies after they have halted operations or left the country:

The German sportswear company warned of a one-off cost of around 500 million euros ($498 million) in 2022.

The Swedish retailer estimated the wind-down of its Russia n business will cost about 2 billion Swedish crowns ($183.57 million), of which about 1 billion crowns will hit cash flow.

Zara owner will book a provision of 216 million euros after agreeing to sell its Russia stores to UAE-based Daher Group.

U.S. apparel company said it would record charges of $0.15 per share connected to impairment of store assets, goodwill and property, plant, and equipment.

U.S. automaker took a $122 million writedown after suspending its Russia n operations.

The Japanese automaker said on Oct. 11 it would hand over its Russia n business to a state-owned entity for 1 euro, taking a loss of around $687 million.The French carmaker reported a 867 million euro impact from exiting Russia , including selling its majority stake in the country’s biggest carmaker, Avtovaz for one rouble.

Volkswagen’s truck division Traton in September said disposing of some assets in Russia would cause a 550 million euro loss.

The Swedish truckmaker said on April it had set aside provisions of $423 million after suspending activities in Russia .

The Wall Street giant said in August it would close its consumer and commercial banking businesses in Russia and expected to incur about $170 million in charges over the next 18 months.

Credit Agricole provisioned more than 500 million euros related to its Russia n exposure in Q1 .

Italian insurer Generali in August booked an impairment of 138 million euros on Russia n exposure.

The Austrian lender recorded 301 million euros in provisions on its businesses in Russia and Ukraine in Q1 .

The French bank in May closed the sale of its Russia n business Rosbank to the Interros group taking a 3.2 billion-euro net income hit.The Swiss bank said in April Russia ‘s invasion of Ukraine had cost about $100 million. It cut its exposure in Russia to $400 million at end-March, from $600 million. CONSUMABLESThe maker of Persil washing detergents and Pritt glue has forecast an impact of 1 billion euros on its full-year sales along with possible writedowns related to the withdrawal from Russia and Belarus.The tobacco giant took a charge of 3 cents per share related to the Ukraine crisis in Q1 , after discontinuing sales of a number of Marlboro and Parliament cigarette products in Russia .The oil and gas giant recorded a $24 billion non-cash writedown of its stakes in Rosneft and two other joint ventures in Q1 .Italian utility agreed in June to sell its 56.43% stake in Enel Russia for around 137 million euros with a negative impact of about 1.3 billion euros.The company recognized net impairments of $1.08 billion related to assets in Russia in Q1 after stopping trading in Russia n oil and shutting operations there.

The oil giant disclosed a $3.4 billion writedown on its Russia exit.

The Austrian energy group said in April it would take a 2 billion euro hit in Q1 from its pullback from Russia .The world’s largest liquefied natural gas trader said in April it will write down up to $5 billion following its decision to exit Russia .The French oil and gas company recorded an impairment o $10.7 billion in total related to Russia , with the latest charge being $3.1 billion in Q3.

The Belgian brewer said its divestment of a non-controlling stake in its Russia joint venture led to a $1.1 billion impairment charge in Q1 .

The Danish brewer said selling its Russia n assets meant a writedown of about 9.5 billion Danish crowns ($1.28 billion).

French food company said on Oct. 14 it would shed control of its dairy business in Russia in a deal that could lead to a write-off of up to 1 billion euros.

The Amsterdam-based brewer expects an impairment and other non-cash exceptional charges of about 400 million euros for exiting Russia .

The world’s largest burger chain took a related non-cash charge of up to $1.4 billion related to the sale of its restaurants in Russia .

The Danish shipping group said it recorded a negative impact of $718 million on its Q1 operating profit after its complete Russia exit.

The world’s largest industrial gases company’s exit from Russia recorded impairments of $993 million from its Russia exit.

The Munich-based engineering and tech firm said in May it would take a 600 million euro hit in Q2 for exiting Russia . ($1 = 0.9965 euros) ($1 = 10.8951 Swedish crowns) ($1 = 4.7340 zlotys) ($1 = 0.9902 Swiss francs) ($1 = 7.4125 Danish crowns)

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