Assessing Foreign Companies' Direct Losses in Russia: Financial Impact, Market Consequences, and Strategic Adjustments

14 Pages Posted: 23 Apr 2025 Last revised: 23 Apr 2025

See all articles by Andrii Onopriienko

Andrii Onopriienko

Kyiv School of Economics

Nataliia Shapoval

Kyiv School of Economics

Oleksii Hrybanovskyi

Kyiv School of Economics

Nataliia Rybalko

Kyiv School of Economics

Date Written: February 22, 2025

Abstract

- 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.

Keywords: Direct Losses in Russia, Losses of foreign bisuness in Russia, direct losses, exit from Russia, write-offs, business seizures, exit taxes, asset seizures, nationalization, financial losses, unstable markets

Suggested Citation

Onopriienko, Andrii and Shapoval, Nataliia and Hrybanovskyi, Oleksii and Rybalko, Nataliia, Assessing Foreign Companies' Direct Losses in Russia: Financial Impact, Market Consequences, and Strategic Adjustments (February 22, 2025). Available at SSRN: https://ssrn.com/abstract=5149548 or http://dx.doi.org/10.2139/ssrn.5149548

Andrii Onopriienko (Contact Author)

Kyiv School of Economics ( email )

3 Shpaka Str.
Kyiv, 03113
Ukraine

HOME PAGE: http://kse.ua/

Nataliia Shapoval

Kyiv School of Economics

Oleksii Hrybanovskyi

Kyiv School of Economics ( email )

vul. Yakira, 13, 3d floor, suite 334
Kyiv, 04119
Ukraine

HOME PAGE: http://kse.org.ua

Nataliia Rybalko

Kyiv School of Economics ( email )

vul. Yakira, 13, 3d floor, suite 334
Kyiv, 04119
Ukraine

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