In May, eight international companies left the Russian market, including the German car-building company Volkswagen and the German manufacturer of tires and automotive electronics Continental.
Source: KSE Institute monitoring
Also, among the companies that completely left Russia in May is the American Authentic Brands Group, which owns the Reebok sporting goods chain.
“Currently, 241 (7.4% of total) international companies have stopped operating in Russia. Also, 1,194 (36.5% of the total number) foreign businesses stopped operations and announced their intention to leave the country,” the monitoring says.
At the same time, 1,336 (40.9% of the total number) companies from those that the KSE Institute monitored will not leave the Russian market yet, working without any changes. Another 498 (15.2% of the total number) foreign businesses have suspended new investments in Russia and continue to wait.
In addition, according to the KSE Institute, international businesses that continue to operate in Russia were able to receive significantly higher (+12.9%) revenue in 2022 (45.6% of the total volume) than in 2021 (32.7% of the total volume).
In particular, tobacco giant Japan Tobacco International increased its revenues by more than US$1.5 billion.
“In second place is the Chinese carmaker Chery Automobile, which took advantage of the fact that most other global auto giants left the Russian market and increased its revenues last year by US$1.3 billion.
At the same time, businesses that finally left the Russian market earned less (-2.6% or 17.1% of the total volume), which is unsurprising since most of them left the country before the end of the year,” the report says.
In 2021, they provided at least 409.5 thousand jobs, generated revenue of US$59.8 billion and paid US$3.7 billion in taxes, or 14.8% of the total taxes of foreign companies operating in Russia at that time, the KSE Institute added.