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Writer's pictureWWHISPER

WESTERN COMPANIES STILL ACTIVE IN RUSSIA

When the Russian army launched its " special military operation " in Ukraine in February 2022, many multinationals announced that they would cease operations in Russia and leave the country. At that time, nearly 3,0000 companies from 85 countries were operating in Russia, employing a rounded 1.3 million staff, representing 2% of the Russian workforce.

US-based Mac Donalds and also Starbucks moved away rather quickly and this was also widely reported in the media. Afterwards, there has been a deafening silence zbout the matter.


So, how are things nowadays ? By November 2022, or 9 months after the start of the conflict, barely 8.5% of European companies and G7 firms, had closed at least one of their subsidiaries in Russia. Thus, 91.5% are still trading for a full 100% as before, and of those 8.5%, that closed one ore more subsidiaries, the other are also still operational.


"From Russia with love", old James Bond film from 1963 does itself all the credit, again. If there are pennies to earn, no war can stop it.


In this link, the results of the study.


Summary :

" The Russian invasion of Ukraine in February 2022 and the corporate decisions that followed offer insights into the extent to which Western firms are willing and able to sever commercial ties with nations now viewed as geopolitical rivals by their governments. We gathered extensive data on equity investments made by foreign companies headquartered in the European Union (EU) and G7 nations and checked whether following the outbreak of armed conflict divestment of their Russian subsidiaries could be confirmed. At the end of November 2022, our analysis shows that 8.5% of EU and G7 companies had divested at least one of their Russian subsidiaries. We performed extensive robustness checks that confirm our overall findings while also revealing some notable variation in divestment rates."







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