Many international brands have left Russia since 2022, citing the Ukraine conflict
President Vladimir Putin has instructed the Russian government to lay the groundwork for the return of foreign firms that left the domestic market due to the Ukraine conflict.
Many major corporations, including Microsoft and McDonald’s, cut ties with Moscow in 2022, citing the launch of Russia’s military operation in Ukraine. The exodus of foreign brands was also precipitated by sweeping Western sanctions imposed on Russia.
Putin has repeatedly said that foreign businesses left of their own accord and that Russia would be open to their return. He stressed, however, that the interests of Russian companies must also be taken into account.
After meeting with the domestic lobbying group Delovaya Rossiya on Monday, Putin instructed the government to examine proposals regarding the terms under which “individuals from unfriendly foreign countries” could do business in Russia and acquire real estate and stocks.
Russia’s “unfriendly country” list currently includes most EU members, as well as the US, UK, Canada, Japan, South Korea, Australia, and New Zealand. Russian Finance Minister Anton Siluanov said last week that restrictions on investments from “unfriendly” nations could be eased.
In May, Putin said Russia must develop a “pragmatic” approach to foreign companies and evaluate their past actions on a case-by-case basis. “If it benefits us to see a company return, we should allow it. If not, we should find a thousand reasons to keep it out,” he said.
Russian investment envoy Kirill Dmitriev said in April that US firms had lost an estimated $300 billion by exiting the Russian market. The US and Russia revived direct negotiations earlier this year and have agreed to gradually restore the ties severed by the Biden administration in 2022.
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