In corporate corner rooms and in the side sentences of financial statements, there is sometimes talk of political risk. Now Russia’s political risk has unleashed in the eyes of companies in the worst possible way. Investments have lost their value and the worst of many is being cut.
Champion, Do, RPM, S Group and numerous others leave Russia. UPM, Valio and Fazer have production facilities and hundreds of employees in the country. The S Group has 16 Prisms.
The mass exodus from its eastern neighbor was already under way before Russia’s brutal attack, but the seemingly insane war has increased the number of emigrants.
The billion-dollar investment has made its own figure Fortum. So far, it has not said it will give up its operations in Russia.
Withdrawal and investment the write-down is, of course, enormous for individual companies. In addition, the closure of Russia is likely to have a much greater impact on the Finnish economy as a whole than anyone now even knows or wants to predict.
Yet it has been clear to everyone who has been in the Russian market for years that the country is not an open market economy, and not a liberal democracy in particular.
The Kremlin has very systematically tightened its grip on everything that moves. Civil liberties have been curtailed and the state’s already tight grip on the economy has been further strengthened.
Boris Nemtsovin and Anna Politkovskaya murders and last Aleksei Navalnyin the assassination attempt have been just the tip of the iceberg. Any random protester could have found himself in the tube.
Pretending to be dead has been the easiest for Finnish actors in Russia as well. It is only hoped that the nightmare will pass over time.
The triggering of political risk would now think of causing a hectic movement in front of the companies ’scenario tables. While comparing China to Russia is limp in many ways, working with undemocratic states can suddenly prove dangerous.
The loss of property can feel a slight annoyance when blood is spilled.