Searching the Global 5000 database, we find 48 companies are headquartered in Russia.
The largest of these – as we have come to expect – are in the energy industry. Gazprom, Lukoil and Rosneft are the big three.
With Russia’s invasion of Ukraine and the follow-on economic repercussions, the market disruptions create a number of challenging scenarios that we are keeping an eye on.
- For any of these 48 Global 5000 companies, foreign revenue will come under pressure and their overall revenue will likely shrink
- From a data tracking and company reporting perspective, it is not clear how the government will let them report their financials
- Companies looking at total market data for particular industries or segments will need to adjust their sights and focus on Total Available Market (TAM) as portions of the market (Russia included) will not be available to their sales & marketing efforts
- There is also the drag along effect on the revenues of companies located outside of Russia who have now divested their Russia operations. Those companies will be smaller as they lose that revenue.
With all of this, we expect the Russia effect on the Global 5000 to be fairly significant as the actions of the government have thrown a significant bump in the flow of global business.