European companies in the “rouble war”

The outbreak of war in Ukraine has created real panic among European companies exposed to the rouble. Faced with the crash of the Russian currency, they immediately tried to limit the damage. Before capital controls were put in place, some demanded the early repayment of loans to their Russian subsidiaries. And they withdrew some of the cash they had placed in Russian banks – despite withdrawal penalties. A responsiveness that has often enabled them to make significant profits.

Today, “companies are unable to repatriate profits and cash from Russia due to strict capital controls. Their funds are blocked on the spot, which weakens certain small and medium-sized enterprises. We find this type of problem in African countries where it takes a very long time for companies to repatriate their income,” notes Sullivan Joubert, head of trading at Ebury France.

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