The Complexities of Companies Leaving or Staying in Russia
Leaving Russia is not as simple as it may seem for global companies due to hurdles imposed by the Russian government, including approval by a government commission and President Vladimir Putin himself, painful discounts and taxes on sale prices, and the threat of confiscation of considerable asset value through forced nationalization. Some companies are staying put, citing responsibility to shareholders or employees, legal obligations to local franchisees or partners, or providing essentials like food, farm supplies, or medicine. Others are biding their time, struggling to shed assets, or attempting business as usual. Over 1,000 international companies have publicly said they are voluntarily curtailing Russian business beyond what’s required by sanctions, according to a database by Yale University.