Since the full-scale invasion of Ukraine began, international companies operating in Russia have incurred direct financial losses exceeding $170 billion, according to a recent study by the KSE Institute. The report, titled Assessing Foreign Companies’ Direct Losses in Russia: Financial Impact, Market Consequences, and Strategic Adjustments, highlights the severe economic toll on foreign businesses. Over 1,300 companies have either reduced or suspended their operations in Russia, with many enduring significant asset write-offs, forced sales, and exit taxes.
Asset Write-Offs and Seized Assets Drive Majority of Losses
A significant portion of the $170 billion in losses stems from asset write-offs, which account for more than $167 billion of the total. These write-offs include the forced seizure of foreign assets by Russian authorities, transferring them to local businesses or state-controlled entities. The report reveals that over $57 billion in assets were seized, despite the original value of these assets being around $74 billion before expropriation.
In addition to the asset seizures, companies faced substantial financial penalties in the form of “exit taxes,” which have been particularly high in 2023. These compulsory fees for asset sales amounted to at least $3 billion, further burdening the companies seeking to divest from Russia.
Countries Most Affected
The countries suffering the highest losses include the United States, Germany, the United Kingdom, France, Austria, and Finland. The financial impact on these nations’ businesses is stark, with the United States incurring losses of $46 billion, Germany facing $44.5 billion in losses, and the United Kingdom recording a $35.1 billion hit. Other countries, including France ($12.1 billion), Austria ($6.7 billion), and Finland ($5.1 billion), also saw substantial losses.
Notable Corporate Losses
Several major companies have taken massive financial hits. British Petroleum (BP), for example, wrote off $25.5 billion after exiting its investment in Russian oil company Rosneft. Other high-profile companies have also been affected, such as Uniper, which faced a $22 billion nationalization, and Fortum, which suffered $4.07 billion in losses. ExxonMobil wrote off $4 billion, while Renault lost $2.4 billion after being forced to sell its Russian operations. Société Générale incurred a $3.3 billion loss following its exit from Rosbank.
Many foreign assets in Russia were sold at steep discounts, with some assets being acquired by Russian state-backed entities or business groups for 90-100% below their market value.
Economic Pressure and Forced Seizures
Russia’s economic strategy has involved systematic mechanisms to pressure foreign companies. At least 30 companies, including Carlsberg, Danone, and ExxonMobil, have had their assets forcibly seized by Russian authorities. These moves are part of a broader effort to maintain economic control and counteract the effects of international sanctions.
Exit taxes for 2023 amounted to $1.2 billion, with an additional $1.5 billion expected by July 2024. As a result, foreign companies have paid over $3 billion in taxes tied to their forced departure. In many cases, companies have seen their profits frozen, and assets transferred to Russian-controlled organizations.
Impact on Key Sectors
The energy sector has borne the brunt of these losses. BP, ExxonMobil, Fortum, TotalEnergies, and Uniper together wrote off more than $60 billion in assets. The automotive industry also faced significant losses, with Renault losing $2.4 billion, and Volkswagen and Nissan sustaining substantial financial damage.
The finance sector saw Société Générale lose $3.3 billion, while banks like UniCredit and Raiffeisen Bank faced major lawsuits and asset devaluation. In the consumer goods sector, multinational corporations like McDonald’s, Nestlé, Unilever, Danone, and Carlsberg either exited Russia or sold their assets for a fraction of their original value.
Continued Exits and Economic Isolation
As of early March 2025, 481 companies have fully exited Russia, while 1,357 others are in the process of scaling down or leaving. Over 2,260 companies, however, remain in Russia, continuing to operate and pay taxes to the Russian government. The KSE Institute’s findings underscore the deepening economic isolation of Russia, with foreign investment sharply declining and the country increasingly relying on state control and Chinese investments.
The continued departure of international companies highlights the growing challenges facing Russia’s economy. As the country’s market becomes more isolated, the long-term effects on its financial stability remain uncertain.
The economic toll on foreign businesses operating in Russia has been immense, with losses exceeding $170 billion since the invasion of Ukraine. As more companies exit the market or scale down operations, Russia’s economy faces increasing isolation and a shift towards greater state control. The future remains uncertain as the country grapples with the consequences of its geopolitical actions and the loss of international business partnerships.
For further updates on the economic impacts and business exits in Russia, visit inews.
