The Strategist

FT: Billions of dollars of Western companies' profits are stuck in Russia

09/19/2023 - 03:31

Western companies that continue to do business in Russia gained more than $18 billion in profits in 2022. However, Russia had frozen these cash, The Financial Times writes.

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Raiffeisenbank recorded the highest profit for 2022 at $2 billion. Raiffeisen Bank International confirmed that it has "no access" to Russian profits.

US PepsiCo made $718 million, while Philip Morris made $775 million. Scania, a Swedish truck manufacturer, had the highest profit among businesses that left Russia in 2022, with a $621 million profit.

Numerous multinational businesses have attempted to sell their Russian operations, but every deal includes significant discounts and needs Moscow's consent. The FT points out that the Kremlin may use "leverages," such as limitations on dividend payments to foreign corporations, to unfreeze Russian assets.