Russian Post estimates losses due to sanctions RT Business News
Business News
Russian Post estimates losses due to sanctions
A Western ban on payments from the country undermined the companys bottom line last year, according to an official report
FILE PHOTO: Sorting mail at the Pochta Rossii Novosibirsk sorting center.
Sputnik / Valery Titievsky
The Russian state postal service has reported massive losses for the first time in nine years, largely due to logistical disruptions caused by Western sanctions, annual results published on Monday showed.
Russian Post incurred total cumulative loss of 30.4 billion rubles ($373 million) in 2022 under international financial reporting standards (IFRS). The operating loss was 15 times larger than a 2.3 billion ($28.2 million) profit recorded in 2021, the figures showed.
Sales revenue dropped by 3.1% last year to 221.2 billion rubles ($2.7 billion), while operating expenses surged 13.8% over the reporting period, amounting to 257.3 billion rubles ($3.15 billion). The loss from operating activities in 2022 reached a record 32.6 billion rubles ($399 million) compared to a profit of 4.7 billion rubles ($57 million) in 2021, according to the official results.
Earlier in March, Russian Post said in a news release that the cost of logistics and equipment maintenance increased sharply last year. Meanwhile the flow of both incoming and outgoing international mail has dropped dramatically due to the suspension of global brands in Russia, difficulties with payments and transport restrictions.
Wednesday, April 26, 2023 at 5:30 am