Russia's war in Ukraine is bad for US businesses, EU Commissioner says

Russia's war in Ukraine is bad for U.S. businesses, which have heavily invested in Europe and whose profits are affected by the uncertainty that Moscow's aggression creates, European Economic Commissioner Valdis Dombrovskis said on Tuesday.

Speaking at the American Enterprise Institute in Washington, Dombrovskis said that in 2023 U.S.-owned assets in Europe were worth an estimated $19.2 trillion, or roughly 64% of all U.S. corporate foreign assets globally. Sales by the European affiliates of U.S. companies were $3.9 trillion.

"For U.S. corporate interests, Europe – as a market, a host of assets, and a crucial link in integrated supply chains – is simply too big to ignore," Dombrovskis said in a speech.

The European Union sees Russia's full-scale invasion of Ukraine since February 2022 as a threat to its security and has strongly stepped up its defence efforts to deter a potential Russian attack.

"(Russian President Vladimir) Putin's aggression, his threats, his brutal rocket and Shahed drone attacks on civilians, his hybrid attacks on critical infrastructure and so on, are not only abhorrent crimes and a moral outrage, they are also bad for business," Dombrovskis said.

"As a source of deep uncertainty, they affect the bottom line. This is a crucial consideration for U.S. foreign policymakers to keep in mind," he said.

Dombrovskis's remarks come as the EU is trying to get the U.S. to increase pressure on Russia through more sanctions, and match the sanctions the EU has already imposed on Moscow through 18 packages of measures since February 2022.

Europe's 19th sanctions package is under preparation.