Russia’s war against Ukraine is having a drastic impact on companies operating in either country.
The listed fruit, starch and sugar group Agrana expects a depreciation requirement of 65 to 85 million euros. The Austrian group operates several fruit processing plants in Ukraine and Russia. According to a current internal review, significant impairments are expected.
The German Tengelmann Group expects to have to write off Russian branches of the DIY store subsidiary Obi. Owner Christian Haub referred to a Russian law in “Manager Magazin” that gives the state the right to expropriate companies whose home countries participate in the sanctions. “I am firmly convinced that it will come to this.” Obi was operating 27 Obi stores through mid-March. They contributed five percent to sales.
After criticism, the Nestlé group continues to remove offers from its range in Russia. Only essential goods such as baby food should still be sold there. Production in Russia will be interrupted. Should profits still be made, these would be donated.
In any case, inflation in Europe will remain high. The Munich ifo Institute expects an inflation rate of 6.1 percent for Germany this year. In December, economic researchers had still expected an inflation rate of 3.3 percent. ifo recommends targeted relief for consumers.
Source: Nachrichten
