Russia’s threat to global brands

Global corporations made almost $214 billion through their local Russian businesses in 2022. Now the Kremlin is seizing foreign assets to sell at bargain-bin prices to Putin loyalists

Top 10 global brands by Russian revenue (2022) 
Philip Morris $7.89bn
Japan Tobacco  $7.36bn
Leroy Merlin $4.90bn
PepsiCo  $4.66bn
British American Tobacco $4.23bn
VEON $4.09bn
Auchan $3.46bn
Metro AG  $3.41bn
Danone $3.00bn
Hyundai  $2.67bn
       

Apr 25, 2023: President Vladimir Putin signs Decree 302 which allows seizure of foreign companies.
Decree is in retaliation for assist freezes by European countries following invasion of Ukraine

Decree 302: Transfers Finland’s Fortum and Germany’s Uniper energy companies to Russia’s property agency Rosimushchestvo

Apr 26: Russia installs new chief executives at Fortum and Uniper.
Both men moving from Rosneft – oil company run by oligarch Igor Sechin (above), close confidant of Putin

Writedowns: Fortum announces writedown of $1.9 billion (€1.7bn), or 50%, on its Russian assets. Uniper books $4.8bn (€4.4bn) loss, writing down value of its asset to zero

Jul 16: Kremlin seizes assets of France’s Danone and Denmark’s Carlsberg (2022 revenue: $1.63bn)

Jul 18: Yakub Zakriev (centre) – nephew of Chechen leader Ramzan Kadyrov – named as head of Danone. Taimuraz Bolloyev (right), longtime friend of Putin, to lead Carlsberg

Sources: B4Ukraine, Kyiv School of Economics Pictures: Getty Images, Twitter © GRAPHIC NEWS