Billions of dollars from Western companies in Russia remain blocked in the country

Since the start of the Ukraine war, Western companies still operating in Russia have made billions of dollars in profits. However, the Kremlin blocked access to cash to companies from hostile countries.

Last year, the Kremlin imposed a ban on paying dividends to companies in “hostile” countries such as the United States, the United Kingdom and EU members. For this reason, the profits of dozens of giant companies such as BP and Citigroup in Russia were blocked in the country.

PROFITS OF GIANT COMPANIES ARE STAGGERED IN RUSSIA

Companies from those countries made $20 billion in profits in Russia alone in 2022, according to data compiled by the Kiev School of Economics (KSE). According to KSE data, the Austrian bank Raiffeisen operating in Russia reported that its profits in 2022 in Russia amounted to $2 billion.

The American companies Philip Morris and PepsiCo earned 775 million and 718 million dollars respectively. The Swedish vehicle manufacturer Scania also made a profit of $621 million in Russia in 2022.

Raiffeisen, the largest Western bank operating in Russia, said it did not have access to its profits in the country. Philip Morris declined to comment on the matter. PepsiCo and Scania did not respond to requests for comment.

According to KSE figures, American companies made the highest total profit at $4.9 billion, followed by German, Austrian and Swiss companies at $2.4 billion, $1.9 billion and $1 billion respectively.

THEY HAVE DIFFICULTY SELLING THEIR COMPANIES

Many foreign companies are trying to sell their Russian subsidiaries, but any deal requires Moscow’s approval. In addition, sales must be subject to high discounts.

Recently, British American Tobacco and Swedish vehicle manufacturer Volvo announced that they had recently reached an agreement to transfer their assets in the country to local owners.