Global Companies Face 76 Trillion Won Losses in Russia...Sanctions Impact Expected to Grow

[Asia Economy New York=Special Correspondent Joselgina] Reports have emerged that global companies have already suffered losses exceeding $59 billion (approximately 75.5 trillion KRW) from their businesses in Russia due to Western sanctions and other factors.

The Wall Street Journal (WSJ) reported on the 10th (local time) that this estimate was made after analyzing companies' public data and filings with the U.S. Securities and Exchange Commission (SEC). WSJ stated, "Many companies are revaluing the book value of their businesses in Russia and depreciating assets whose values have declined," and predicted that as more companies choose to exit Russia due to Western sanctions, the scale of these losses will continue to grow.

According to researchers at Yale University, nearly 1,000 Western companies have pledged to completely withdraw from the Russian market or reduce their operations there following the Ukraine invasion.

The American fast-food chain McDonald's is expected to record accounting losses of $1.2 billion to $1.4 billion. Previously, McDonald's agreed to sell its stores in Russia to a local licensee. Oil company ExxonMobil also incurred costs of $3.4 billion after halting its oil and gas projects in Russia's Far East region.

Beer company Anheuser-Busch, famous for Budweiser, suffered losses of $1.1 billion due to its decision to sell its stake in a Russian joint venture. Irish aircraft leasing company AerCap reported accounting losses of $2.7 billion last month, including over 100 aircraft leased to Russian airlines. British energy company BP recorded losses on Russian assets totaling $25.5 billion last month, including a $13.5 billion stake in Russian state-owned oil company Rosneft.

Companies maintaining operations in Russia are also unable to avoid losses due to asset value declines. French company TotalEnergies announced in April that it incurred costs of $4.1 billion due to the decline in the value of natural gas fields in Russia caused by Western sanctions.

This content was produced with the assistance of AI translation services.