A slew of companies have announced plans to stop business in Russia over the last several weeks, and many of them are now sharing what those decisions may cost them.
Some companies had limited exposure to Russia and signaled that the expected losses were not significant. JPMorgan Chase’s chief executive, Jamie Dimon, told shareholders that the bank wasn’t “worried” about the impacts from leaving Russia. For industry giants like Shell, the financial hit — while large — accounts for just a fraction of their overall profits.
On Monday, Société Générale, France’s third-largest bank, said it would take a hit of $3.3 billion in a deal to sell the company’s controlling stake in Rosbank, a Moscow-based lender, to Interros Capital. The deal would allow the bank to “exit in an effective and orderly manner from Russia, ensuring continuity for its employees and clients,” the company said.
Here are some of the expected impacts that companies have disclosed:
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BNY Mellon said it may lose as much as $200 million in revenue — about $100 million this quarter and an additional $80 million to $100 million over the rest of the year. It has ceased new business with Russia and “suspended investment management purchases of Russian securities,” a spokesman for the company said.
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JPMorgan Chase’s chief executive, Jamie Dimon, said in an annual letter to shareholders that the bank could lose $1 billion “over time” because of its exposure to Russia. Last month, the bank announced that it was winding down business in Russia and would not be pursuing new ventures there.
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Shell said in an update to shareholders that its decision to leave Russia would cost the company $4 billion to $5 billion in this quarter alone. The oil giant began cutting ties with Russia in February and said last month that it would stop buying oil and gas from Russia and shutter its service stations in the country in a “phased withdrawal.”
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Société Générale said it would take a financial hit of $3.3 billion in a deal to sell the company’s controlling stake in Rosbank, a Moscow-based lender, to Interros Capital.
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Volvo said it was setting aside about $423 million to make up for losses it anticipated in the first quarter because of Russian exposure. The carmaker has suspended “all sales, service and production” in the country, the company said.
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April 11, 2022 at 09:59PM
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