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Ukraine crisis: Exodus of firms from Russia
reversing 30 years' investment
Foreign energy majors have been pouring in money since the 1990s
Russia Ukraine Conflict: The invasion of Ukraine is causing a mass
exodus of companies from Russia, reversing three decades of investment
by Western and other foreign businesses there following the collapse of
the Soviet Union.
The list of those cutting ties or reviewing their operations is growing by the
hour as foreign governments ratchet up sanctions against Russia, close
airspace to its aircraft and lock some banks out of the SWIFT money
messaging system. With the ruble plunging and the U.S. banning
transactions with the Russian central bank, operating in Russia has
become deeply problematic. Some companies have concluded that the
risks, both reputational and financial, are too great to continue.
For some companies, the decision to exit Russia is the conclusion of
decades of lucrative, if sometimes fraught, investments. Foreign energy
majors have been pouring money in since the 1990s. Russia’s largest
foreign investor, BP Plc, led the way with its surprising announcement on
Sunday that it would exit its 20 per cent stake in state-controlled Rosneft, a
move that could result in a $25 billion write-off and cut its global oil and gas
production by a third…Read More