How Big of a Risk Is Russian Divestment?
Pressure is mounting for companies to take a stand against Russia waging war on Ukraine by severing their ties to the country, regardless of the cost.
Certain corporations have been proactive, such as the oil giants that were among the first to move out. BP, for example, is divesting its near-20% stake in Russia's state-owned oil company Rosneft, which will cause it to take a massive $25 billion charge. Meanwhile, Shell is exiting from all Russian operations and partnerships, including with another of Russia's government-owned oil giants Gazprom, which could lead to as much as $3 billion in impairments.
That seems an appropriate response, considering the Russian government's dependence on oil, but many consumer product companies are also taking a stand and suspending operations or selling their stakes in Russian ventures.
Source Fool.com
