KSE: Just under 10% of foreign companies working in Russia have left, more than half are staying

KSE: Just under 10% of foreign companies working in Russia have left, more than half are staying
9.6% of the foreign companies working in Russia in KSE's database have fully exited, up from 9% last year, but more than half have been working for two full years since the war started and show no signs of exiting. / bne IntelliNews
By Kyiv School of Economics February 13, 2024

As of February 4, 2024, 356 international companies (9.6% of the total number of entries in the KSE database or 27.8% of the companies that generated revenue in Russia in 2022) have entirely ceased operations in Russia.

As of 2021, they had over half a million employees, and in 2022 they generated $93.1bn in annual revenue, $46.1bn in capital and $71.9bn in assets.

1,210 (32.7% of the total number of entries) foreign businesses employing 352,800 people, generating annual revenues of $73.1bn and owning assets of $124.6bn, have curtailed operations in Russia or announced their intention to leave the country.

1594 (43% of the total entries) foreign companies still have no plans to leave the Russian market.

At the same time, 544 (14.7% of the total entries) businesses have reduced their current operations, suspended new investments and continue to wait.

In February 2024, KSE Institute plans to move companies from the "wait" status to the "stay" group, as two years of full-scale invasion have given enough time for more active and decisive actions.

In January 2024, KSE experts identified eight international companies that have finally left the Russian market, four of them through liquidation. These are Axis Communications, a Swedish company that manufactures and sells network cameras and surveillance systems; Bank of Cyprus, the largest banking and financial group in Cyprus; Banque Cramer & Cie SA, a Swiss company that provides institutional brokerage services; and ExxonMobil, the American multinational oil and gas corporation.

The other four were sold, in particular: Famur, a Polish manufacturer of machinery for the mining industry; Faurecia, a French automotive supplier; GEFCO Group, one of the top ten transport and logistics groups in Europe; and Royal Greenland, a fishing company.

"Most likely, after almost two years of full-scale invasion, the owners of international companies that had business in Russia gave up futile attempts to sell their businesses and decided to exit radically through complete liquidation," says Andrii Onopriienko, Deputy Development Director at KSE and head of the LeaveRussia.org project.

The KSE public database is updated on a weekly basis.

We created the Telegram bot for tracking/news monitoring on foreign companies’ status.

We also developed a barcode scanner (only for mobile devices!). It allows users to check if a brand or company still operates in Russia just by scanning barcodes.

In January 2024, KSE Institute with support of volunteers developed a new application for Apple Store in addition to our database, which currently contains the world’s most comprehensive information on the activities of global corporations on the Russian market.

The Kyiv School of Economics (KSE) is a bne IntelliNews media partner and a leading source of economic analysis and information on Ukraine. This content originally appeared on the KSE website.