Companies from Europe and the G7 countries did not leave Russia en masse
Only 8.5% of companies in the EU and G7 countries have left Russia A Swiss university study questioning “Discourse on a Wide Exodus” Businesses since the invasion of Ukraine.
Before the start of the conflict in February, 2,405 subsidiaries of 1,404 companies from the EU and G7 countries were operating in Russia, identified Professors Simon Evenet of the University of St. Gallen and Niccolò Pisani of ‘IMD Lausanne, a prestigious business. Management Company.
By the end of November, nine months after the invasion of Ukraine, less than 9% of the surveyed group had already sold at least one Russian subsidiary, mainly departures from American companies rather than European or Japanese ones, according to their work.
Several factors may explain why companies do not leave Russia. Their activity, for example, may not come under sanctions. Others may not want to opt out due to utility “community” Their products, list the authors of the study, are an example of essential drugs. Some may not find a buyer at a good enough price, while others, even if they do find a buyer, come up against restrictions the Russian government has been able to put in place. “block” Where “Delay Transfer”and prevent repatriation of proceeds of sale.
But if the number of Western companies retreats “Does not increase significantly” In a couple of years, “The willingness or ability of many Western institutions to withdraw from jurisdictions that their governments view as geopolitical rivals may be questioned.”They say.
According to their research, one hundred and twenty Western companies left Russia by the end of November. Of those still active there, 19.5% are German, 12.4% are American, and 7% are Japanese.
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