Over 2,000 companies wait for approval to exit Russian market — KSE
Russian dictator Vladimir Putin (Photo:Reuters)
Since Russia overtook Iran in number of sanctions — they now have 20 times the number — over 2,000 applications for foreign companies to exit the Russian market are awaiting approval, said a study by the Kyiv School of Economics on April 17.
It will take at least eight years to process all the applications.
Only 15.7% of foreign companies in Russia have completely withdrawn from the Russian market.
Another 28% are waiting and 23.8% continue to work in the Russian market as before the war.
The remaining 32.5% of foreign companies plan to withdraw from Russia soon.
In total, 1,212 (38.2%) foreign businesses have stopped operations and declared their intention to withdraw from Russia.
In the last two weeks, two companies have been added to the “exited” category.
The 211 companies that have completely exited Russia as of April 16 had at least 331,500 employees, $47.6 billion in annual revenue, $36.5 billion in capital, and $45.4 billion in assets.
Companies that have stopped operating and plan to exit the market soon had 313,200 employees, $56.6 billion in annual revenue, $23.3 billion in capital, and $24.5 billion in assets.
Companies that have suspended operations in Russia had 171,500 employees, $42.2 billion in annual revenue, $17.4 billion in capital, and $30.9 billion in assets.
The impact that the complete withdrawal of the companies has had on the Russian economy is quantifiable. The companies employed almost one-quarter (23.1%) of the population, represented over one-fifth (20.9%) of foreign investment, generated $47.6 billion in revenues in 2021 (15.7% of total revenue), and paid $3.3 billion in taxes (13.2% of all taxes).
The Russian government is taking various measures in response to Western sanctions, KSE experts said.
Every Western company wanting to exit the Russian market and sell its assets must now transfer a direct payment to the budget of the aggressor state.
Only 9% of the nearly 1,500 global companies operating in Russia quit the country following its full-scale invasion of Ukraine, Presidential Office advisor, Mykhailo Podolyak, said on Feb. 11.
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