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3 years ago
FACTBOX -The effect of Russia sanctions on European companies
August 13, 2014 / 11:34 AM / 3 years ago

FACTBOX -The effect of Russia sanctions on European companies

Aug 13 (Reuters) - Russia has issued a ban on European Union food imports, retaliating against Western sanctions over Moscow's actions in Ukraine.

Here are some recent comments and announcements showing the impact of the sanctions on European companies.

* German utility E.ON posted a 12 percent drop in first-half core profit, hit by a weakening economy in Russia, and said it was concerned about the impact of the Ukraine crisis on its most important foreign market.

* Finnish department store chain Stockmann said the operating environment in Russia was unstable, as it reported a smaller-than-expected second-quarter operating profit, pulled lower by a decline in the Russian rouble.

* Consumer goods group Henkel forecast a tough six months ahead, with political turmoil in Russia and volatile exchange rates hurting sales.

* Russia has returned some cheese shipments to Italy and cancelled pear exports from Modena under a food import ban, an agriculture group said.

* Austria's Raiffeisen Bank International (RBI) played down the potential impact of sanctions on its business in Russia, where it is the 10th-largest lender.

* Norwegian salmon prices were seen falling due to Russia's food sanctions, forcing farmers to scramble for new markets at a time when prices are already under pressure.

* The CEO of Finland's Nokian Tyres said he expected sales volume in Russia to be about flat in the third quarter compared to a year earlier

* With foreign lending to Russia frozen, some European banks are trying to refinance existing loans to big companies there in order to protect their business.

* A drop in Russia's car market quickened in July. Sales slid 23 percent, the latest sign that Russians are increasingly worried about the impact of the Ukraine crisis.

* Lufthansa, Air France-KLM and Finnair would be hit hardest by a potential closure of airspace over Siberia, flight tracking data showed.

* Rheinmetall slashed its 2014 operating profit target after the German government withdrew its approval for a contract with Russia and the group shifted some of its automotive business to a joint venture.

* Daimler has seen growth weaken in Russia's auto market due to the Ukraine crisis, Chief Executive Dieter Zetsche told Germany's Bild am Sonntag newspaper.

* Part-nationalised British lender Royal Bank of Scotland said it had placed restrictions on its lending in Russia following developments in Ukraine.

* Adidas cut its profit target for this year and scrapped it for next year, blaming a plunge in sales at its golf business and exposure to a weak Russian market.

* The head of Russia's second-largest oil producer Lukoil said sanctions would force the company to reduce its investments due to limited access to funds.

* Russian mobile phone operator Megafon said it converted foreign currency deposits to roubles and Hong Kong dollars to protect against any more sanctions.

* German retailer Metro AG said conditions were still not right to list a stake in its Russian cash-and-carry business.

* French oil major Total said it had stopped buying shares in Russia's Novatek when a Malaysian airliner was shot down over Ukraine, but it was still too early to gauge the impact of sanctions.

* BP posted a big rise in second-quarter profit but warned more sanctions on Russia could harm business there and its ties to state oil company Rosneft.

* More than 25,000 jobs are at risk in Germany following the latest sanctions, the German Committee on Eastern European Economic Relations said. "Further damage is looming for the European and especially the German export industry. More than 25,000 jobs are in danger in Germany alone," it said. (Compiled by Tom Pfeiffer)

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