Insights & Ideas

70% of the market-cap companies on the FTSE Russia IOB Index have been negatively impacted by sanctions

 

British-owned companies operating in Russia have more to lose


London – 12 August 2014: Many of the companies issuing profit warnings are citing the Russian–Ukrainian crisis as the reason. Rosslyn Analytics has set out to find out how many UK companies are at risk of losing significant revenues from this escalating economic battle.

Global companies including Adidas, Volkswagen, Siemens and Metro are just a handful that have referenced Russia in profit warnings over the past few days. The question is how big is the risk to UK Plc?

Research conducted by Rosslyn Analytics reveals the UK economy is at risk as there are over 30 times more British-owned companies (1,154) operating in Russia than Russian-owned companies (38) operating in the United Kingdom. UK-owned businesses in Russia generate £12.5 billion per year while Russian-owned UK companies generate £4.8 billion per year.*

Other findings from the research reveals:

  • The largest revenue generating Russian-owned company in the UK is Gazprom which accounts for more than 90% of the total £4.8 billion per year.
  • The three largest UK-owned Russian companies account for 38% of the £12.5 billion revenue per year. These companies are Evraz Plc, Harrison Ltd. and Imperial Tobacco, respectively.
  • The top three sectors of UK-owned Russian companies are: blast furnaces (15%); motor vehicles (12%); and, tobacco products (5%).

Hugh Cox, Chief Data Officer of Rosslyn, commented, “What was once perceived as an isolated regional event in Ukraine has quickly turned global overnight. Financial centres are now jittery because there is a strong possibility that companies will not be able to meet their revenue forecasts. Chief executives need relevant and timely market intelligence in order to safeguard their investments. Rosslyn Analytics helps organisations understand and mitigate their exposure to global events.”

Rosslyn Analytics has developed an interactive risk map that sheds light on Russian parent companies under government sanctions and their subsidiaries. This insight enables executives to gain a clearer understanding of the risk of doing business with companies, including how to respond to unforeseen geo-political events.

Rosslyn Analytics has one of the largest databases of connected data organisations can easily access on-demand, enabling users to have unmatched insight into operations such as supply chain risks from a single dashboard.

*Note: From data available in the public and commercial arena.

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