555 international companies hesitate to migrate from Russia

About two thirds of more than 1,500 international companies cease their operations in Russia, while 555 companies continue to operate partially or normally in the country.

After the start of the Russia-Ukraine war, Western countries planned to harm the Russian economy by sanctioning Moscow, while most Western companies announced that they would cease their activities in Russia after the sanctions.

In the database of the Yale School of Management’s Institute for Executive Leadership, “those who leave the country completely,” “those who leave the door open to return to the country despite temporarily suspending or suspending their activities in Russia ”, and “significantly terminated activities despite maintaining some lines of business in Russia”, “buying time by postponing future investment or growth while continuing their business” and “companies continuing their business as normal”.

Accordingly, 525 companies in the category of leaving Russia completely, 503 companies in the category suspending or temporarily suspending their activities, 151 companies in the category of continuing some lines of business, 177 companies in the category creating buyers of time, and 227 companies in the category that continue their activity normally.

NOT REFLECTED IN THE APPLICATION

Two thirds of these companies, whose total number exceeds 1,500, are Western, and the rest are multinational companies. Among these companies, a total of 555 companies operate partly or normally in Russia.

The data shows that quick declarations by Western companies that they would withdraw from Russia immediately after the war were not reflected in the same way in practice, with many companies continuing their activities in the country in the 16-month period since war. beginning of the war.

AMERICAN AND GERMAN COMPANIES ARE COMING TO THE FOREFRONT

28 companies from Germany, 26 from the US, 25 from France, 12 from Italy, 8 from Austria, 5 from the UK, 5 from Spain and 3 from Switzerland, despite sanctions from Western countries, are in Russia as usual. continue his work.

In Russia, there are 46 companies from the US, 20 companies from Germany, 12 companies from France, 9 companies from Italy, 7 companies from Austria, 9 companies from England and Switzerland among which “buy time” by postponing their future growth. plans. .

56 American, 19 German, 10 Swiss, 6 French, 5 Italian, 4 British and 2 Austrian companies are among those that continue to operate some lines of business in Russia.

According to Russian media reports, the profits of the top 100 Western companies remaining in Russia in 2022 increased by 54 percent compared to 2021, reaching 1.1 trillion rubles ($13.2 billion). The companies in question paid some 288 billion rubles ($3.5 billion) in corporate taxes in 2022.

Companies that made big profits last year included French energy company Total Energies, Austrian bank Raiffeisen and British oil company BP.

CHINESE AND INDIAN COMPANIES HAVE LESS PRESENCE

While 13 Indian companies continue their activities in Russia as usual, 2 India-based companies are on the “time buyer” list and one company maintains a part of the business line.

There are 13 Japanese companies normally operating in Russia.

RUSSIAN COMPANIES DESTROYED 30 PERCENT OF GDP

Jeffrey Sonnenfeld, senior dean of Management Leadership Studies at the Yale School of Management, in his statement on the analysis, said that right after the war, they initially analyzed companies into two basic categories such as “get out of Russia” and “stay in the country”, but then the situation of the companies was so clear, he said that it was not clear.

Jeffrey Sonnenfeld noted that large-scale companies from countries like Japan and China are leaving Russia “surprisingly and rapidly.”

Stating that they estimated that companies that emigrated from Russia destroyed 25 to 30 percent of the country’s GDP, Sonnenfeld said: “Some sectors disappeared between 60 and 95 percent due to companies leaving the country. For example, 95 percent of the automotive industry was affected by the exit of companies. (In terms of supply chains) It has gotten to such a point that there is no product that Russia can fully offer to world markets at the moment. If the Russian economy is holding up right now, it is because the economy is under public control, but eventually the problems will get worse.” he performed the assessment of it. (AA)