Only 8.5 percent of Western companies operating in Russia have withdrawn from their investments.

Only 120 of the 1,405 companies operating in Russia, based in the European Union (EU) and the G7, have been determined to have withdrawn from capital investments in the country.

San in Switzerland Simon Evenett, professor of international trade and economic development at the University of St. Gallen, and Niccolo Pisani, professor of strategy and international business at the independent academic institution IMD, said that EU-based companies and countries of the G7 invested in their capital in Russia. and the war started by Russia in Ukraine, analyzed the current activities of these companies, which announced that they would leave the country later.

Analysis; It was restricted to companies based in the EU and the G7, with equity investments in Russia, and with revenues of more than $1 million in at least 2017-2021.

HEADQUARTERS IN THE EU OF 2,405 OF 3,444 COMPANIES

Accordingly, 2,405 of the 3,444 foreign companies in Russia were determined to be subsidiaries of 1,405 companies based in G7 or EU countries.

In this context, it was determined that as of November 2022, 120 of the 1,404 companies, or 8.5 percent, had withdrawn their capital investments from Russia.

Of the 120 companies that abandoned their activities in Russia, 25 percent were American, 12.5 percent Finnish and 11.7 percent German-based companies.

10.8 percent of the companies in question are based in the United Kingdom, 7.5 percent in France, 5.8 percent in Japan, 4.2 percent in Denmark, 4.2 percent in the Netherlands and 3.3 percent in Ireland.

15 percent of companies are based in other EU and G7 countries.

MOST OF THE COMPANIES BASED IN GERMANY

Despite the sanctions from Western countries, German-based companies have the largest share with 19.5 percent among 1,284 G7 and EU companies that still have active equity investments in Russia.

It is followed by companies based in the US with 12.4 percent, Japan with 7 percent and Italy with 6.3 percent.

The remaining 5.8 per cent of companies were found to be based in the UK, 5.6 per cent in France, 3.7 per cent in Austria and 2.9 per cent in the Netherlands, while other companies based in the EU and G7 countries made up the rest.

WHAT COMPANIES HAVE ANNOUNCED TO LEAVE RUSSIA?

After the Russian-initiated war in Ukraine, many companies, from energy to fashion, from the food and beverage industry to cosmetics, automotive and technology, announced that they would withdraw from their activities in Russia.

Among these companies, Amazon and Apple have suspended their activities in Russia from March 2022, while Google has halted some operations in the country and Microsoft has halted new sales. Companies including Samsung, Starbucks, Mercedes and Disney have also reported halting operations in Russia.

Shell announced that it would exit its projects and joint ventures in Russia at the end of February last year, and Norway-based energy company Equinor would begin to exit its joint ventures in Russia and halt new investment in the country. (AA)