Following its invasion of Ukraine, Russia has recorded the largest fall in brand value among all the world’s nation brands in 2022, according to the latest Nation Brands report.
The report published by Brand Finance, a London-based brand valuation consultancy stated that the decision to go to war appears to have undermined Russia’s economic standing, as evidenced by the stark nation brand value decline by $144billion to $642 billion this year from $786 billion in 2021.
“This reflects the damage to commercial brands associated with Russia, to the country’s ability to access capital, as well as to its potential to influence perceptions across the world.
“The widespread economic sanctions imposed on Russia have added to the health, social, and economic disruption caused by the COVID-19 crisis.
It further added that prior to the pandemic in 2019, Russia’s nation brand was valued at $960 billion, but has since fallen by a third – placing it between much smaller Belgium ($647 billion) and Austria ($570 billion) at only 24th among the world’s top 100 most valuable brands.
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On February 24, Russia invaded Ukraine in a major escalation of the Russo-Ukrainian War, which began in 2014. According to reports, the invasion has likely resulted in tens of thousands of deaths on both sides and caused Europe’s largest refugee crisis since World War II with around 7.4 million Ukrainians fleeing the country and a third of the population displaced.
Russia experienced its greatest emigration since the 1917 October Revolution. The invasion has also caused global food shortages.
The Russian invasion has caused a humanitarian crisis, bringing destruction and suffering to the people of Ukraine, says Konrad Jagodzinski, Place Branding Director, Brand Finance.
“Russia is now paying a heavy economic price for its decision to start this war. This is demonstrated by the self-inflicted damage to Russia’s nation brand, which is now worth less than that of Belgium, a country with a population 12 times smaller,” Jagodzinski said.
The report highlighted that although the war has wrought catastrophic humanitarian and economic devastation on Ukraine, causing its brand value to drop by $22 billion from $107 billion to $85 billion, the nation has successfully defended its independence and won the support of allies internationally, resulting in a significant increase in its brand strength.
