Western companies that have left the Russian market have suffered losses of $103 billion - NYT
Kyiv • UNN
Western companies that have left the Russian market have suffered losses totaling $103 billion. President Putin benefits from acquiring assets at below market value and imposing high taxes on exits.
Western companies that announced their withdrawal from Russia after the start of Russia's full-scale invasion of Ukraine have suffered a total loss of $103 billion. This is reported by The New York Times , which analyzed financial reports, according to UNN.
Details
According to the publication, Russian President Vladimir Putin has turned the exit of large Western companies from the Russian market into a benefit for the loyal Russian elite and the state itself. He has forced companies willing to sell their assets to do so at reduced prices. The Russian dictator has also restricted sales to buyers selected by Moscow.
The New York Times reports that Vladimir Putin has imposed high taxes on companies that have announced their departure from Russia, bringing in at least $1.25 billion over the past year.
In general, as the newspaper notes, Putin manages one of the largest financial flows within Russia since the collapse of the Soviet Union.
State-owned enterprises have acquired assets of corporate giants such as Ikea and Toyota. In many cases, Putin personally signs the deals.In some cases, the Russian president's inner circle directly appeals to him to intervene.
For example, the Dutch beer company Heineken found a buyer this spring and set a price. But the Russian government unilaterally rejected the deal, sources close to the negotiations told the NYT, and the company's Russian assets ended up in the hands of an aerosol packaging titan married to a former Russian senator.
Most foreign companies are staying in Russia, not wanting to lose the billions they have invested there over the decades.
"Those who leave lose their positions," Kremlin spokesman Dmitry Peskov told The Times. "And, of course, their property is being bought up at a serious discount and transferred to our companies, which are happy to do so."
However, the wave of companies that have decided to leave the Russian market has become a global signal that Russia is a business pariah, The New York Times notes.
Russia's economy is under strain and at risk of overheating. The way Putin has reacted to the withdrawal of Western companies has only strengthened Russia's image as a dangerous place to do business. Even some high-ranking Russian officials recognize that reduced competition and foreign investment will hurt ordinary Russians and the economy in the long run.
