The
corporate exodus from Russia since its 2022 invasion of Ukraine has cost foreign companies more than
$107 billion in writedowns and lost revenue
Moscow demands discounts of at least 50% on foreign asset sales and has steadily tightened exit requirements, often accepting nominal fees
as little as one rouble
So far this year, sales of assets owned by
Shell (SHEL.L), opens new tab,
HSBC (HSBA.L), opens new tab, Polymetal International
(POLY.MM), opens new tab and
Yandex NV (YNDX.O), opens new tab have been announced, totalling nearly
$10 billion and at discounts as high as 90%. Last week, Danone
(DANO.PA), opens new tab said it received regulatory approvals to dispose of its Russian assets,
taking a total loss of $1.3 billion.
Western nations froze around $300 billion of the Bank of Russia's gold and foreign exchange reserves after Russia's invasion. Russia has promised to retaliate against EU proposals to
redistribute billions of euros in interest earned on its frozen assets, warning of
catastrophic consequences and saying any attempt to take its capital or interest is "banditry".Russia's state RIA news agency calculated that the West
stood to lose assets and investments worth at least $288 billion if Moscow were to retaliate.
Renault
(RENA.PA), opens new tab will transfer its 68% stake in Russia's biggest carmaker Avtovaz to an auto research institute
for one symbolic rouble, Russia said on Wednesday, the latest example of
local institutions snapping up bargains as Western firms flee.
Renault's factory in Moscow, which produces cars under the Renault and Nissan brands, would be
passed to the city's government
More than 750 companies have announced they are curtailing operations there to some degree
British energy company Shell was reported to be in talks with some
Chinese firms to sell its stake in a major Russian gas project.
It's like the frog and the scorpion meme except without the frog
