Global companies slow to exit Russian market despite continued invasion
After over 21 months of a full-scale invasion, less than 10% of foreign companies have officially cut ties with Russia, indicating a hesitancy among global corporations to withdraw from the market.
In November, only seven international businesses joined the 302 companies that have severed connections with Russia so far. One company even reverted back to "remaining" during the same period.
A handful of international companies have recently completed their exit from Russia, said the Kyiv School of Economics (KSE). These include Amedia (highlighting concerns over business confiscation), Bonava, Clancy Engineering, Eastnine AB, Flugger, Laude Smart Intermodal S.A. (with a probable internal agreement, as the new owner is LLC ASIA INTERMODAL is from Kazakhstan), and Sandvik (following the liquidation of the legal entity of the Sandvik Coromant group in May 2023).
The findings, part of KSE’s "Self-Sanctions/LeaveRussia" project, shed light on the impact of foreign business exits on the Russian economy.
TP-Link's status was updated from "left" to "remaining" after it was revealed that the previous sale was an intra-group transaction, and the company continues its active trade with Russia.
302 international companies, comprising 8.3% of the total KSE database or 23.6% of companies generating income in Russia in 2022, have ceased operations as of Dec. 3, 2023.
Another 1,227 companies, constituting 33.7% of the total, have wound down operations and expressed their intention to depart the aggressor country.
Surprisingly, 1,563 companies, or 43%, have decided to remain in the Russian market without changing their operations. Another 547 companies, representing 15%, have opted to suspend new investments and are waiting.
The research was undertaken by the KSE Institute team and members of the KSE Board of Directors from Nov. 20 to Dec. 3, 2023, with the support of the International Renaissance Foundation.
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Read the original article on The New Voice of Ukraine
