Three-quarters of foreign companies have reduced or stopped business in Russia – experts

Of the three largest foreign banks in the Russian Federation, only one has completely left the Russian market.

Another 580 foreign companies continue to operate in Russia / photo from UNIAN
Another 580 foreign companies continue to operate in Russia / photo from UNIAN

As of today, 1,439 foreign companies from 70 countries and 55 sectors of the economy have reduced, suspended or terminated their activities in Russia .

This is stated in a study by the Kiev School of Economics.play video

In particular, 1,017 companies curtailed Russian operations, another 422 reduced current operations and suspended new investments. Another 580 continue to operate in Russia.

“As of May 13, we have identified about 2,000 companies and organizations and their position in the Russian market, about half of them are public. For about 400 public groups of companies, we have also identified their operating business in the Russian Federation (the presence of a controlling stake in a legal entity) , which made it possible to calculate the value of capital invested in the country (about $113 billion), local revenue (totaling $200 billion), as well as personnel (almost 700,000 people),” the report says.

As of May 13, the companies that announced their full exit from Russia had $27.2 billion in annual revenue and $13.8 billion in capital, the CSE added. Companies that suspended their activities in the Russian market had an annual income of $66.2 billion and $35.4 billion of capital. Only the top 10 companies – the largest taxpayers paid $ 13.7 billion in taxes per year.READ ALSO:

Russian banking sector

According to the CSE, of the 3 largest foreign banks in Russia, only one has completely left the Russian market, and 2 are considering selling their business, but have not yet taken concrete steps.

Experts remind that investment banks were the first to announce their withdrawal from the Russian market. From March 10 to March 15, the American Goldman Sachs , JP Morgan, Citi, German Deutsche Bank and Commerzbank announced the winding down of business in Russia. Ceased activities in the Russian Federation and the French Credit Agricole .

At the same time, according to the CSE, many subsidiaries of foreign banks, although they do not conduct active business in Russia, serve their international clients, and therefore leave their presence. Italian Intesa Sanpaolo, Japanese Sumitomo Mitsui , British HSBC and Dutch ING, Swedish SEB have stopped doing new business with Russian companies, but remain on the market.

Among the three foreign banks in the Russian Federation with the largest assets, the French Societe Generale was the first to withdraw, having signed an agreement in April to sell Rosbank to Vladimir Potanin’s Interros.

Meanwhile, the Austrian Raiffeisen Bank and the Italian Unicredit Bank continue to operate in Russia.

Earlier , Raiffaisen Bank International said it was evaluating all strategic options for its future in Russia, including a “carefully managed exit.” And on May 11, it became known that UniCredit was negotiating the sale of the Russian subsidiary, but there were no specifics yet.

The Hungarian OTP Bank said that it does not provide financing to its bank in the Russian Federation and reduces corporate lending. The Czech Home Credit tried to sell its Russian subsidiary even before the start of military aggression and reduced assets, but after the start of the war, the company did not make statements regarding its business in Russia, the CSE notes.

kse.ua
kse.ua

As UNIAN reported earlier, the Center for Counteracting Disinformation under the National Security and Defense Council said that despite statements about leaving the Russian market, some international companies manipulate concepts and, in fact , still work for the Russian consumer .

Among the companies that, despite loud statements, still remained on the Russian market, albeit having reduced their presence: Nestle, MARS, Danone, Procter & Gamble and some others.

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