western banks find a serious loss due to the exit from the Russian market
And for those who still remain in Russia, the strengthening ruble itself has become a big headache. Their Russian assets are rising in price so quickly that it is impossible to sell. But the damage persists not only in banks
Western business, which decided to leave Russia immediately after the start of special operations in Ukraine, allows excessive losses, writes bloomberg. Thus, the French banking group Societe Generale reported that in the second quarter its pre-tax losses amounted to 3.3 billion euros.
Those who left in no hurry saw how their profitability in Russia was growing due to the approaching ruble. Thus, the Austrian Raiffeisen Bank in May covered its loan portfolio market in Russia by 22%, but its assets still increased more than 3 billion euros. This is explained by the fact that the Russian currency strengthened by about 40% in the second quarter. And that became a problem.
But it’s not just the overvalued ruble. The director of the Banking Institute of the Higher School of Economics Vasily Solodkov continues:
Vasily Solodkov Director of the Banking Institute of the Higher School of Economics
Of course, it is not only banks that are affected by leaving Russia. Here are some examples. Mercedes-Benz estimated the losses from leaving Russia at 1.4 billion euros – this follows from the quarterly report company. The world’s largest container line Maersk lost more than 600 million dollars. And even aluminum can manufacturers are losing money. Thus, reports Ball Corporation amounted to 435 million dollars. losses.
At the same time, neither food packaging nor containers were arrested. The logic of Western companies that themselves are leaving Russia, General Director of the National National Security Fund Konstantin Simonov:
Konstantin Simonov Director General of the National Environmental Security Fund
Question: Do those who left Russia explore return scenarios under certain conditions, mainly from the discovery, probably, is the completion of a special operation? But the implementation of active actions does not mean automatic termination of the action. And there is a feeling that anti-Russian sentiment in the Western world will not decline soon. So the Western business that left Russia will return very soon.
