Posted on 10/08/2022 10:25:54 PM PDT by House Atreides
In order to demonstrate support for Ukraine, Western corporations made the decision to pull out of Russia when the war in Ukraine started.
At that time, concerns were raised that these corporations’ withdrawal of investments, store closures, and sales pauses in Russia could stunt the country’s economic growth. However, Russia was quite innovative; the businesses continued under entirely new names.
However, Western businesses are now voicing their displeasure as they bear the brunt of the recession that has slammed the West; and why not, a cumulative loss of $300 billion could even make billionaires cry.
According to RBC Daily, foreign companies that have halted operations in Russia or pulled out completely have incurred losses of between $200 and $240 billion since the end of February 2022.
A total of $70-90 billion was lost by firms that had left altogether from Russia on the very first day of the Ukraine war.
If the estimates are to be believed, 34% of the “large” foreign companies doing business in Russia have scaled back their operations, 15% have chosen to leave the country by selling their Russia division, and 7% have announced a complete departure without selling the company.
The report also indicated that foreign businesses operating in the oil and gas spheres, as well as the banking, automotive, and food industries, suffered the most severe losses.
A Big Setback So, this research solidifies the claims that the European Union had anticipated back in May 2022. At that time, European banks had an idea that leaving Russia would spur more trouble for Western businesses.
On average, more than 1000 western companies left Russia, abandoning both their clients and staff. However, it is safe to say that these sudden closures have caused more problems for Western companies themselves.
Companies from the US, UK, and Germany have reportedly been hit the hardest due to the departure.
Whereas the companies most swift in leaving the country were from Finland. Reportedly, 80% of Finnish businesses decided to withdraw from Russia, followed by Denmark (73%) and the UK (35%).
However, businesses from Austria, Japan, and Switzerland were “more flexible and pragmatic” in their decisions. Furthermore, Polish businesses have smartly stayed in Russia despite the harsh rhetoric of the country’s authorities.
Read More: Cheap food, cheap energy and abundant jobs; Western sanctions turn the fortunes around for Russians
A Reassessment now!! It’s not like Western companies didn’t anticipate what may occur if they even scaled back their operations in Russia.
Adidas, the German sportswear giant, issued a warning in March that the closing of all of its 500 stores in Russia would have a greater impact on its sales than anticipated. The business issued a warning that it might put revenues of up to 250 million euros at risk.
Furthermore, when foreign businesses were packing their bags to leave Russia, Manfred Knopf, chief executive officer of Commerzbank, argued that shutting down operations in the face of western sanctions wouldn’t be a wise move for corporations that make a lot of money.
And now, here we are. Exactly as the CEO’s prediction that “Corporate insolvencies in markets will undoubtedly rise.” Businesses are feeling the effects of the recession, and the future of business likewise appears bleak.
However, Russia, which was eventually in the crosshairs of the West’s nefarious attempt, isn’t even bothered about the departure of Western business.
As a result of closed businesses, Russians started establishing their own alternative business chains. For instance, when McDonald’s chose to stop operating in Russia, the Russians opened Uncle Vanya’s as a McDonald’s replacement.
The world’s best-performing currency at the moment is the Russian ruble, which has mostly recovered from its losses. The Ruble has returned to its pre-war levels, but the dollar is under the weather.
The West believed that cutting all economic links with Russia would be a masterstroke to totally shut down the alleged “war machinery.” The complete opposite, however, has occurred in this instance.
The financial fallout of the conflict is quite significant for most multinationals.
Kind of like the Daily Mail, Washington Post, NY Times, etc., etc., etc., Right?
The world desperately needs what Russia can produce.
That is the reality which cannot be erased with propaganda.
McDonalds got the Russians buying their food. They are still buying it, though from a Russian-owned chain that assumed the successful operations stupidly abandoned by a management of idiots.
What is astonishing is the Western world is intentionally destroying itself based on delusional thinking. Many of the world’s leaders are prisoners of theoretical nonsense dangerous to the lives and futures of everyday citizens.
I cannot think of such widespread, self-destructive madness EVER running wild like this before in the history of the world. Who destroys their economic prosperity over academic arguments, grounded in cultural hatred of Russia, feverishly insisted upon by a bunch of power-mad, Western fools?
Companies also lost when Nazi Germany declared war on Poland.
Uncle Vanyas has a problem getting potatoes
Russia has sold oil and gas at 40% discount to India and China
No, they aren’t buying as the Russian marshals had a shortage of potatoes. And they closed the restaurants
And the profiteers are like franchise merchants on the Titanic. They are making big money but don’t realize the ship will be sinking shortly.
The sanctions have always been a joke.
Intentionally.
“Anyone who made the decision to listen to Biden or listens to Biden or any of his advisors is a bigger moron than CornPop himself.”
I think someday and that someday may be soon, we will discover that CornPop is really going to be closer to the original Uncle Tom character than the bully ‘King Joseph’ describes.
This was my first thought when I first heard that western corps were pulling out of Russia. Russia hardly even felt it, and quickly became economically stronger.
Give me one example of how Russia became economically stronger with part shortages and now with manpower shortages.
If anyone actually believes this nonsense, convert all your US dollars to rubles for the long term.
https://www.travelex.com.au/buy-currency/rub-russian-ruble
Good luck with that.
"Customers visiting the rebranded Russian McDonald's are posting pictures showing moldy buns and expired sauce for fries"
https://www.businessinsider.com/russians-share-photos-telegram-moldy-buns-expired-sauce-rebranded-mcdonalds-2022-7
Good summary. I think there is mental illness induced by decades of prosperity. Reality has been displaced in the West with a narrative that will eventually destroy us.
I think they know that the ship of state sinks, and plan on 1) aggrandizing their wealth until that time, and 2) use the wealth to insulate themselves as best they can while others suffer.
Because it’s inconvenient, but a 40% discount to prices that were over $9.50 in September versus $4 in February for natural gas is still a good deal for Russia, and a 40% discount to $95 a barrel of oil is still far above the cost for Russia to provide it, when they were still making money on $25 a barrel of oil.
On the other hand, the scarcity has far more than doubled our gas costs here and in the EU, forced energy costs up that and far more.
It doesn’t hurt Russia like it did anyone else.
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