A slew of companies have announced plans in recent weeks to shut down operations in Russia, and many of them are now sharing what those decisions could cost them.
Some companies had limited exposure to Russia and indicated that the expected losses were not significant. JPMorgan Chase chief executive Jamie Dimon told shareholders the bank was not worried about the fallout from leaving Russia. For industry giants like Shell, the financial blow – though big – is only a fraction of their total profit.
On Monday, Société Générale, France’s third-largest bank, said it would cost a $3.3 billion hit in a deal to sell the company’s controlling stake in Rosbank, a Moscow-based lender, to Interros Capital. . The deal would enable the bank “to exit Russia in an effective and orderly manner, ensuring continuity for its employees and customers,” the company said.
Here are some of the expected effects companies have disclosed:
BNY Mellon said it could lose up to $200 million in revenue — about $100 million this quarter and another $80 million to $100 million over the rest of the year. It has halted new transactions with Russia and “suspended investment management purchases of Russian securities,” a company spokesman said.
JPMorgan Chase CEO Jamie Dimon said in an annual letter to shareholders that the bank could lose $1 billion “over time” due to its exposure to Russia. Last month, the bank announced that it was scaling down its activities in Russia and would not enter into new ventures there.
Shell said in an update to shareholders that its decision to leave Russia would cost the company between $4 and $5 billion this quarter alone. The oil giant began cutting ties with Russia in February, saying last month it would stop buying oil and gas from Russia and close its gas stations in the country in a “phased pullout”.
Société Générale said it would cost a $3.3 billion financial blow in a deal to sell the company’s controlling stake in Rosbank, a Moscow-based lender, to Interros Capital.
Volvo said it set aside about $423 million to make up for losses it had anticipated in the first quarter from its Russian exposure. The automaker has suspended “all sales, service and production” in the country, the company said.