What did Russia's war cost business by late July 2022?
Two reports from 27 July 2022 showed how the invasion was reaching corporate balance sheets and European gas supplies.
What was the war doing to business and energy markets by 29 July 2022? Two reports published two days earlier, on 27 July 2022, gave part of the answer.
McDonald's reported that its profits fell by 46% in the second quarter of 2022, while its revenue dropped by 3%. The fall followed the company's exit from Russia, a move that was counted among the economic effects of the Russian invasion of Ukraine.
The same day, the Russian energy company Gazprom cut the volume of natural gas flowing through the Nord Stream 1 pipeline from Russia to Europe. Flows were reduced to 20% of the pipeline's capacity. The reduction was part of the 2022 gas dispute between Russia and the European Union.
Taken together, the two reports showed the economic fallout of the invasion extending well beyond Ukraine's borders: a Western consumer company absorbing the cost of leaving the Russian market, and European energy supply being squeezed by a sharp cut in pipeline deliveries.
