Assessing Foreign Companies' Direct Losses in Russia: Financial Impact, Market Consequences, and Strategic Adjustments
Year:
2025Published in:
KSE Institute- Since 2022, foreign companies have suffered over $167 billion in direct losses due to their exit from Russia, including write-offs, unfair court decisions, and business seizures. - About 50% of all write-offs occurred in 2022, ~38% in 2023, 5% in 2024 and 7% in 2025. - Total losses for 30 companies whose assets were seized: More than $57 billion, with their Russian assets valued at ~$74 billion. - Additional "exit taxes" imposed by Russia have resulted in further financial burdens, with foreign companies paying at least RUB 250 billion (~$2.7 billion) between 2023 and mid-2024. - Key industries impacted include energy, automotive, finance, and consumer goods. - Russian countermeasures such as forced nationalization, asset seizures, and sales restrictions have intensified financial losses. - The long-term impact includes shifts in corporate geopolitical strategies and a reevaluation of risk exposure in unstable markets.