Almost 70% of Austrian firms operating in Russia continue to work as normal

17 January, 01:54 PM
Austrian investments in Russia as of 2021 amounted to about $6 billion, while Russian investments in Austria stood at $29 billion (Photo:www.flickr.com/Ricky)

Austrian investments in Russia as of 2021 amounted to about $6 billion, while Russian investments in Austria stood at $29 billion (Photo:www.flickr.com/Ricky)

About 70% of the Austrian companies active in the Russian market before Feb. 24 continue to work there exactly as before, the Kyiv School of Economics (KSE) Institute said on Jan. 16 in its weekly digest on the impact of foreign companies exiting the Russian economy.

According to data collected by the KSE, Austrian investments in Russia as of 2021 amounted to about $6 billion, while Russian investments in Austria stood at $29 billion.

Out of the 63 Austrian companies in the KSE database, 69% remain in Russia, another 14% are somewhat limiting their activities, 14% are leaving, and 3% have already left.

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The two Austrian companies (or 3%) included in the KSE database that have completely left the Russian market and sold their shares ares MM Packaging (the Mayr-Melnhof Group (MM), which has sold its two packaging sites in Russia, in St. Petersburg and Pskov) and Petro Welt Technologies (which operates as a service provider in the natural gas and oil production business).

Swarovski, an Austrian company specializing in the production of loose crystals, jewellery, crystal figurines and the cutting of synthetic and natural gemstones, is currently suspending all sales in Russia.

At the same time, Raiffeisen Bank (a universal Russian bank) and Rotax (a manufacturing company, whose engines were discovered on Iranian drones that attacked Ukraine’s critical infrastructure) continue to work as usual in Russia.

As of Jan. 15, about 160 companies (5.3%) have completed the sale of their business in Russia (+2 per week). Meanwhile, about 38.5% of foreign companies have already announced their withdrawal from the Russian market, another 39.8% are still remaining in the country, and 16.3% have suspended activities.

The KSE experts said that as of Jan. 15, the companies that have already completely exited from Russia had at least 300,200 personnel, $41.2 billion in annual revenues, $33.9 billion in capital and $36.4 billion in assets.

At the same time, the companies that are in the process of withdrawing from Russia have 172,700 personnel, $34.2 billion in revenues, $14.8 billion in capital and $16.6 billion in assets.

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