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What did Russia's war cost business by 28 July 2022?
Summary
Two corporate developments reported on 27 July 2022 showed how the invasion of Ukraine was reaching company accounts and European gas supply.
How far had the economic fallout of Russia's invasion of Ukraine spread by 28 July 2022? Two reports from 27 July pointed to very different channels: one a Western company's earnings, the other the flow of gas to Europe.
A company exits Russia
McDonald's reported that its profits fell by 46% in the second quarter of 2022, while its revenue fell by 3%. The fall followed the company's exit from Russia. The figures gave a measurable account of what leaving the Russian market had meant for the business.
Gas flows cut back
The second development concerned energy. Russian energy company Gazprom reduced the amount of natural gas flowing through the Nord Stream 1 pipeline from Russia to Europe to 20% of the pipeline's capacity. The step formed part of the 2022 gas dispute between Russia and the European Union.
Two sides of the same conflict
Taken together, the reports showed pressure running in both directions: a Western firm bearing the cost of withdrawing from Russia, and a Russian supplier sharply reducing deliveries along a major route to Europe. Both developments were reported on 27 July 2022, and both shaped the economic picture the following day.
