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Russia sanctions: billions in losses for the European economy

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Russia sanctions: billions in losses for the European economy

According to one analysis, European companies lost at least 100 billion euros last year as a result of the Russian war of aggression in Ukraine (icon image). picture alliance / Zoonar | DesignIt

The largest European companies lost at least 100 billion euros last year. This emerges from an analysis of theFinancial Times“ out.

The losses result from the sale, closure or downsizing of Russian businesses as a result of the attack on Ukraine.

In addition to the energy and supply sector, the chemical industry and the automotive industry in Germany suffered the greatest losses in a European comparison.

The Russian war of aggression in Ukraine not only costs lives, but also causes economic losses. Overall, the largest European companies recorded losses of at least 100 billion euros last year. This emerges from an analysis of theFinancial Times“ (FT) out.

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As part of the analysis, the “FT” examined 600 annual reports and financial statements of European corporations for the year 2023. The sum of 100 billion euros results from asset impairments, one-off expenses and currency-related costs resulting from the sale, closure or downsizing of Russian Business areas result and are reported in the annual financial statements. However, indirect macroeconomic effects of the war, such as higher energy and raw material costs, were not taken into account.

Germany is among the top 3 losers in a European comparison

According to the study, the losses are concentrated in a few sectors. These include above all the energy and utility companies, which are responsible for more than half of the total losses. But car manufacturers and banks also recorded write-downs. According to FT, the biggest losses were in Great Britain, France and Germany.

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According to the analysis, the German energy company Uniper booked 5.7 billion euros in impairments. Lower Saxony-based gas and oil producer Wintershall Dea said in January that it had lost two billion euros due to the expropriation of its Russian business. As a result, Wintershall owner BASF’s stake in the group fell by 6.5 billion euros. Raiffeisenbank also reported losses of one billion euros.

In addition to the energy and supply sector, the chemical industry and the automotive industry in Germany suffered the greatest losses in a European comparison.

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