Foreign Businesses Do Not Intend to Return to the russian Market

Although foreign businesses have no plans to return to the russian market, the kremlin continues to “draw” conditions for the return of companies that ceased operations in the rf after the start of the full-scale armed aggression against Ukraine.

As of the end of 2024, 62 % of companies from countries defined as “unfriendly” in russia had ceased operations in its territory. Out of 300 foreign enterprises that had production facilities or significant assets in the country, 183 companies have completely withdrawn from the russian market.

Given moscow’s basic requirements, those willing to return to business in russia will be hard to find. The requirements include: the placement of complete production chains in russia, creation of joint ventures with russian shareholders and, most importantly, non-involvement of a foreign company in financing the Armed Forces of Ukraine, foreign agents or organizations recognized as undesirable in the rf.

Representatives of russian business will also be able to assess the risks associated with the return of foreign companies and provide recommendations on the feasibility of such a return.

Despite the statements and steps taken by the russian side, it is unlikely that foreign companies will return to the fussian market in the short term. The main obstacles remain the russian-Ukrainian war, the Western sanctions regime, and high political and reputational risks.