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Report: The Kremlin may seize U.S. companies’ Russian assets—and investors are unaware of the risk

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Despite valiant-sounding verbal commitments, many Western companies still haven’t fully exited Russia. As the war’s consequences cut deeper into Russia’s economy, asset exposure becomes a greater risk for the world’s largest companies and their investors.

Arguing that it’s “useful to investors to know this now, in advance of any expropriations,” the Moral Rating Agency—created to track whether companies are making good on those vows to leave—has released a new report on major global corporations’ risk of expropriation. It argues many of these companies, which haven’t divested yet fully, do face a risk, and that the Kremlin’s recent attempts to tighten its grip on critical sectors like energy may even mean it’s too late for some.

To rank “risk,” the report looked at Russian assets that corporations still own (such as factories) plus any stakes they may have in local Russian businesses or projects. Based on its ranking methodology, 47 of Earth’s 200 largest companies—nearly one quarter—are at risk of Russian expropriation. It assigns exposure risks of 0 to 10; eleven of those at-risk companies received a 10, the worst score.........

© Fast Company

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