According to a new report based on an analysis of their annual financial statements, major European financial firms have directly lost at least 100 billion euros due to Russian markets since the start of the Ukraine conflict in February 2022.
176 companies have recorded asset impairments, foreign exchange-related charges, and other one-time expenses as a result of the sale, closure, or reduction of Russian businesses, according to a survey of 600 European groups’ annual reports and 2023 financial statements, the UK-based Financial Times newspaper reported on Sunday.
The Daily added, “The aggregate figure does not account for the war’s indirect macroeconomic effects, such as higher energy and commodity costs.
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It stated, citing the study, “Financial companies — including banks, insurers, and investment firms — have recorded €17.5 billion in writedowns and other charges.”.
The report also noted that the biggest oil companies suffered the greatest losses, though their enormous profits from rising oil and gas prices more than offset the loss of the Russian business.
The few exposed sectors bear the bulk of the withdrawal costs. The oil and gas industries are those with the highest writedowns and charges, with just three companies reporting combined charges of €40.6 bln: BP, Shell, and TotalEnergies, according to the daily.
However, it went on to explain that these losses were more than offset by enormous overall profits brought about by the rising prices of oil and gas.
The report also stated that industrial firms, including automakers, suffered losses totaling 130.6 billion euros.
However, the report emphasized that the conflict in Ukraine has given the industry that makes weapons a significant profit boost.
The report is released at a time when several European nations, including Britain, France, and Germany, have experienced an unprecedented economic and energy crisis during the conflict in Ukraine as a result of unilateral Western sanctions against Moscow because Europe is so reliant on Russian gas.
The disruption of supply chains has raised fuel and food prices throughout the EU, pushing inflation to record highs and raising the cost of living.
To express opposition to what they describe as NATO’s proxy war in Ukraine, protests have been held in a number of European cities, including Berlin and Prague.
In Nuremberg last month, hundreds of German protesters took to the streets to demand that the West cease sending weapons to Ukraine, including cluster munitions made in the US.
The anti-war protest further criticized Ukrainian politicians as being Washington’s puppets.
On February 24, 2022, Russia launched its “special military operation” in Ukraine. Since then, billions of dollars worth of weapons have been sent to Ukraine by the US and its Western allies.
Russia has repeatedly warned that providing Ukraine with more Western weapons will only make the conflict worse.
