A slew of companies have announced plans to shut down operations in Russia in recent weeks, and many are now sharing what those decisions could cost them.
Some companies had limited exposure to Russia and reported that expected losses were not material. JPMorgan Chase chief executive Jamie Dimon told shareholders the bank was not “worried” about the consequences of leaving Russia. For industry giants like Shell, the financial hit – while significant – is only a small fraction of their profits.
On Monday, Societe Generale, France’s third-biggest bank, said it would take $3.3 billion in a deal to sell the company’s majority stake in Rosbank, a Moscow-based lender, to Interros Capital. The deal would allow the bank to “exit Russia in an efficient and orderly manner, providing continuity for its employees and customers,” the company said.
Here are some of the expected impacts the companies disclosed:
BNY Mellon said it could lose up to $200 million in revenue – about $100 million this quarter and another $80-100 million over the rest of the year. It ceased all new business with Russia and “suspended investment management purchases of Russian securities,” a company spokesperson said.
Mr Dimon said in an annual letter to JPMorgan shareholders that the bank could lose $1 billion “over time” due to its exposure to Russia. Last month, the bank announced it was ending its operations in Russia and would not pursue new ventures there.
Shell said in an update to shareholders that its decision to leave Russia would cost the company $4 billion to $5 billion in that quarter alone. The oil giant began cutting ties with Russia in February and said last month it would stop buying oil and gas from Russia and close its service stations in the country as part of a “phasing out”.
Societe Generale said it would take a financial hit of $3.3 billion in a deal to sell the company’s majority stake in Rosbank, a Moscow-based lender, to Interros Capital.
VOLVO said it was setting aside about $423 million to offset anticipated losses in the first quarter due to exposure to Russia. The automaker has suspended “all sales, services and production” in the country, the company said.