While more than 1000 companies chose to leave the Russian market, almost 250 decided to stay, despite the Ukrainian crisis
© Yale Chief Executive Leadership Institute
Almost 250 international companies continue to operate in Russia, including more than 100 EU enterprises, according to a list compiled by Yale’s Chief Executive Leadership Institute.
Since the launch of the Russian military offensive in Ukraine in late February, the Institute has been tracking the responses of more than 1,200 companies.
“Over 1,000 companies have publicly announced they are voluntarily curtailing operations in Russia to some degree beyond the bare minimum legally required by international sanctions – but some companies have continued to operate in Russia undeterred,” it said.
Among 247 international companies that continue their activity in Russia, 116 originate from EU countries, including prominent brands such as Benetton, Diesel, Giorgio Armani, Lacoste, and Raiffeisen Bank, to name a few. Some American big names, such as Hard Rock Café, Tom Ford, and TGI Fridays also feature on the list of companies “that are just continuing business-as-usual in Russia.”
In response to Russia’s attack on Ukraine, the US, the EU, the UK and many other countries imposed hard-hitting sanctions on various sectors of the Russian economy. Since the end of February, hundreds of foreign companies, most recently Coca Cola, Ikea, and McDonald’s, announced the cessation of their operations in Russia.
Russia has been retaliating by imposing its own counter-sanctions against “unfriendly” countries and adopting measures against their companies.
At the same time, as Kremlin spokesman Dmitry Peskov said earlier this week, Russia will “take good care of those foreign businessmen who stay” by offering them favorable conditions.
Russian President Vladimir Putin also recently stated that his country would welcome businesses that wished to return and warned that some companies may regret their decision to leave the Russian market. Peskov reiterated this view, saying that, for many of the firms that left, it would be harder and more expensive to come back, because “the vacuum” created by a company that leaves the Russian market “is instantly filled by someone else.”
