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.
So if I’m ever a tourist in Russia and have a hankering for a McDonald’s burger, I’ll head to Uncle Vanya’s.
Fascinatingly stupid reasoning, by the corporations and the Powers That Be.
Sanctions boomerang far worse than ever expected.
Russia couldn’t have economically hurt us worse than we did to ourselves.
On top of that, Russia gets higher prices on the same oil and gas than they got before the sanctions.
Biden: don’t buy Russian oil or gas
China, India, any other country not aligned with the US, NATO, Australia: Nah, we’ll but what we want from who we want.
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. And they deserve anything negative for they brought it on themselves.
Putin’s meat grinder is causing hundreds of thousands of Russians to flee Russia. That can’t be good for business.
TFIGlobal is an Indian propaganda site known for its lack of credibility. TFI stands for The Frustrated Indian. Businesses in the freer countries are not wanting to fund Russia’s burning, raping and pillaging expeditions. ;D
The Russians knew this was a possibility and prepared for it over many years. They had a a plan in place for how to deal with our form of economic warfare since what and how we do is a well known playbook.
That said, the damage we’re causing is not as great as we’d wish and likewise the pain we will suffer is far greater than we imagined. It’s questionable who is going to get hurt more (long term), the Germans or the Russians. Wait until winter, and wait until November when opec starts cutting production by 2 million barrels a day (something Russia pushed for)...
We made a gross miscalculation. The Russians are not some miniscule terd we can poke and push around at will.
That’s a stupid lie. The only thing the Russian military is grinding is hohos.
any company that stays in Russia
will face opposition at several levels
Hundreds of thousands of Russians fleeing Russia for their lives disagree with you.
All the companies that fled Russia are doing fine
this article is merely more Russian propaganda, designed to stop the sanctions ... which obviously must be working, if Russia is so desperate to stop them!
(gonna be a bleak winter in Russia)
Not as bleak as Germany
Seeing Germans snap frozen kind of brings back the old days when hundreds of thousands of them froze trying to kick in the door in Russia
and now Russia is “trying to kick in the front door” in Ukraine ... and they’re having the same amount of luck
LOL
Business C-suites and boardrooms have been thoroughly infected by the Woke virus. And, on top of that, the State Department, an important source to international business for understanding the world political landscape, spreads the Woke disease like monkeypox at a gay bathhouse.
It is astonishing that business leaders don't understand that whenever politics invades an organization, that organization becomes disoriented and eventually ruined.
All this is a testament to the fact that business has placed more value on so-called political connections than wisdom. This is what happens when businesses decide to play the crony capitalism game.
Crony capitalism was the bone and sinew of the Third Reich. Field Marshal Herman Goering owned the iron and steel industry. All of the Reich's buddies got a nice slice of the pie.
Early days. French and English were at it for 100yrs.
And Obama introduced it to the U.S.
--- "Crony capitalism was the bone and sinew of the Third Reich."
Mussolini defined Italian fascism as the combination of corporate and state power. The term, crony capitalism, seems to have come about to sully the notion of basic capitalism in order to confuse terms, and thereby confuse a citizenry.
The National Socialists were what Hitler and Goebbels called "Aryan socialists" to distinguish them from the Marxist socialists, and so the various versions of "state" power -- some with greater control or involvement in corporations -- have defined these. The Soviet Socialists and the Sino-Socialists or Chinese Communists have all be termed "crony capitalists."
Today's Democrat-led West and Europe's EU Commission are essentially working hard towards this "crony" end, which is not capitalism with its competition between competitors, but state power further controlling corporations.
All the complaints from the pro-this side and pro-that side refuse the notion that the Ukraine-Russia conflict is actually a civilizational and cultural event are basically cheering for one version or another of Mussolini's construct above. Given twenty two years of military adventurism and consistently lost wars on the part of the so-called "Pax America," the "state" and some corporation have gained in power and control, but this has meant that in the West -- the EU and the US -- we have behaved according to the terms of Mussolini's idea. And the other "crony capitalists," all war profiteering for the few and to the detriment of the many. Today's American involvement in Ukraine seems far less about "freedom" than that growing combination of state and corporate power, with all the profiteering thereto.
And for this, the US has passed into over $31 trillion in federal debt and the EU is essentially bankrupting at a fast pace. Make sense? Only if you are among the profiteers.
... as a canuck, how’s that totalitarian thing working out up north? Stick your head back in the sand, it’s going to be a fine winter in Russia while the Germans burn every tree in the country to not freeze to death, boy that will go great with their faux watermelon agenda (green on the outside, red on the inside)... ymmv
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