The Russia-Ukraine crisis is putting revenue portions of 130 multinational companies (MNCs) at risk, according to GlobalData. The leading data and analytics company has identified 130 MNCs that have a presence in either Russia, Ukraine, or both. It predicts that the total combined at-risk revenue could be worth up to $306.5 billion*.

Abhinay Kadempally, Business Fundamentals Analyst at GlobalData, comments: “Russia’s invasion could have a significant impact on the economic growth of Ukraine as the country would need substantial funds to rebuild its infrastructure. The state of affairs is evident from the approval of a $1.4 billion fund by IMF under the Rapid Financing Instrument (RFI) to mitigate the economic impact. The crisis has also disrupted several global supply chains, including food and edible oils, as Ukraine is one of the leading suppliers of wheat, corn, barley and sunflower seeds.”

Globaltrans Investment, a railway transportation services company headquartered in Cyprus, generates the largest portion of its revenue from Russia among MNCs tracked by GlobalData**. This is followed by Netherlands-based technology company Yandex NV, and Cyprus-based Agriculture company Ros Agro. Meanwhile, VEON, a telecommunication services provider, generates the largest portion of revenue from Ukraine among MNCs, followed by Sweden-based healthcare company Medicover, and Austria-based bank Raiffeisen Bank International AG (RBI).

Among companies based in Russia, telecoms company Mobile Telesystems has the largest amount of domestic revenue generation, followed by banking and financial services company, Sberbank Rossii, and retailer Detsky Mir. Individually, these companies generate over 95% of total revenue from the domestic market.

Impact on sectors

The metals and mining, construction, consumer packaged goods, and oil and gas sectors are some of the industries that have been most impacted by the Russia-Ukraine crisis, as several ongoing projects and potential investments have been halted.

Kadempally continues: “Essential services such as pharmaceuticals and healthcare, energy, and packaged foods could witness a quick recovery. However, the impact on other sectors could remain uncertain due to displaced labour and funding priorities.”

Companies in the petroleum oils, natural gas, pharmaceutical products, and automobiles sectors will be impacted the most, as these sectors are Ukraine’s largest imports. Russia is also a key exporter of mineral fuel oils, iron and steel and paper to Ukraine.

Sanctions and ongoing conflict

Russia has been hit by tough economic sanctions. Western nations have frozen the assets of Russia’s Central Bank, which blocks it from accessing $630 billion reserves. NATO and other EU partners have also banned businesses and individuals from dealing with Russian government agencies and businessmen. Further, airspace has been closed for Russian aircraft in the US, Canada and several countries in Europe.

Kadempally adds: “Though the responses to sanctions on Russia are mainly coming from European and North American companies, it is still difficult for Russia to seek solace elsewhere as several shipping companies, including Maersk, have abandoned air and ocean freight services to Russia and Ukraine.”

*Revenue corresponds to FY2020, the latest year for which annual results are available for the majority of companies.

**GlobalData’s Multinational Companies database tracks over 7,400 Tier-1 companies. This figure was calculated based on individual country contribution disclosed by the company

For more information about how the Russia-Ukraine crisis is affecting industries, download GlobalData’s Ukraine Conflict: Executive Briefing.