https://sputnikglobe.com/20230408/cost-of-sanctions-foreign-firms-suffer-2-bln-losses-after-leaving-russia-1109269563.html
Cost of Sanctions? Foreign Firms Suffer $2 Bln Losses After Leaving Russia
Cost of Sanctions? Foreign Firms Suffer $2 Bln Losses After Leaving Russia
Sputnik International
A whole array of foreign firms left Russia in the aftermath of the West’s tough sanctions against Moscow.
2023-04-08T10:55+0000
2023-04-08T10:55+0000
2023-04-08T10:55+0000
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Foreign retail companies that withdrew from Russia or suspended operations amid Moscow’s special military operation in Ukraine have lost about $2 billion in profits, a Russian business daily has reported.The Spanish clothing corporation Inditex, which owns brands such as Zara, Bershka, and Massimo Dutti, among others, suffered approximately $300 million in losses. French sporting goods retailer Decathlon endured losses of at least $140 million, while Italian luxury retailer Moncler and French luxury design house Hermes jointly lost around $200 million, according to the sources.They added that among brands that remain closed in Russia but have not yet finalized their intentions to leave the country there are net losses estimated at $500-$700 million.Japanese clothing manufacturer Uniqlo could be the hardest hit in terms of revenue, given the company’s ever-increasing income from sales in Russia between 2019 and 2021, the insiders suggested.In early January, a poll revealed that more than 50% of Russians were unabated by the exodus of global fashion brands from the country in 2022. A slew of foreign firms leaving the Russian market was preceded by the introduction by the West of “severe” sanctions against Moscow due to its special military operation in Ukraine. While admitting the sanctions’ negative effect on the Russian economy, Putin also underscored that these restrictive measures also backfired on all those who applied them.
https://sputnikglobe.com/20230323/how-russia-beat-western-sanctions-and-remained-strong-amid-global-economic-storm-1108731821.html
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foreign retail brands' withdrawal from russia, west's sanctions againts russia, russian special military operation in ukraine
foreign retail brands' withdrawal from russia, west's sanctions againts russia, russian special military operation in ukraine
Cost of Sanctions? Foreign Firms Suffer $2 Bln Losses After Leaving Russia
A whole array of foreign companies left Russia after the West decided to impose sanctions against Moscow. However, the restrictions slapped shortly after the launch of Russia’s special military operation in Ukraine backfired on those who introduced them, President Vladimir Putin has pointed out.
Foreign retail companies that withdrew from Russia or suspended operations amid Moscow’s special military operation in Ukraine have lost about $2 billion in profits, a Russian business daily has reported.
The newspaper quoted unnamed sources as saying that the biggest losers include furniture giant IKEA and Swedish clothing brand H&M, which lost roughly $400 million and $363 million, respectively.
The Spanish clothing corporation Inditex, which owns brands such as Zara, Bershka, and Massimo Dutti, among others, suffered approximately $300 million in losses. French sporting goods retailer Decathlon endured losses of at least $140 million, while Italian luxury retailer Moncler and French luxury design house Hermes jointly lost around $200 million, according to the sources.
They added that among brands that remain closed in Russia but have not yet finalized their intentions to leave the country there are net losses estimated at $500-$700 million.
Japanese clothing manufacturer Uniqlo could be the hardest hit in terms of revenue, given the company’s ever-increasing income from sales in Russia between 2019 and 2021, the insiders suggested.
The news comes after President Vladimir Putin said that companies that quit Russia left behind a “good legacy,” as he pledged not to let their various assets and infrastructure go to waste. “Our companies, [and] our entrepreneurs are picking up these enterprises and businesses and continuing this work. And [this process takes place] quite successfully,” Putin stressed.
In early January,
a poll revealed that more than 50% of Russians were unabated by the exodus of global fashion brands from the country in 2022.
At least 56% of respondents revealed that they had barely noticed the departure of foreign clothing brands, including Chanel, Louis Vuitton, Zara, and H&M. Interviewed Russian consumers said that neither their preferences nor their wallets have been impacted by the withdrawal of the firms, according to the survey.
A slew of foreign firms leaving the Russian market was preceded by the introduction by the West of “severe” sanctions against Moscow due to
its special military operation in Ukraine. While admitting the sanctions’ negative effect on the Russian economy, Putin also underscored that these restrictive measures also backfired on all those who applied them.
