About 2000 foreign companies are waiting to leave Russia

About 2000 exit applications from foreign companies are awaiting approval from the Russian government, but it will take at least eight years to process them all. This is stated in the monitoring of the KSE Institute within the framework of the project "Self-sanctions" on the impact of the exit of foreign businesses on the economy of the Russian Federation, writes forbes.ua.

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Key facts

• According to the KSE, only 15,7% of foreign companies have completely closed down their activities and left the Russian market, while 28% are waiting and 23,8% of companies continue to work in the aggressor's market without restrictions. Another 32,5% announced plans to close down their activities and leave the Russian Federation in the near future.
• A total of 213 (6,7% of the total) international companies have completely ceased operations in the Russian Federation. In the last two weeks, two companies have been added to the category with the status of "withdrawn".
• 1212 (38,2% of the total) foreign businesses closed operations and declared their intention to leave the country. At the same time, 1242 (39,1% of the total) companies that were monitored by the KSE Institute are not going to leave the Russian market yet, working without any changes. Another 508 (16% of the total) foreign businesses have suspended new investments in Russia and are still waiting.

Context

According to the KSE, the 213 international companies that completely left the Russian market provided at least 331 jobs, their annual revenue was $500 billion, the capital was estimated at $47,6 billion, while the value of the assets of these companies reached $36,5 billion.

The international companies that announced their complete withdrawal from Russia had 313 employees, $200 billion in annual revenue, $56,6 billion in equity and $23,3 billion in assets. Foreign businesses that suspended their activities in the Russian market had 24,5 employees, annual revenue of $171 billion, $500 billion in capital and $42,2 billion in assets.

Companies that have already completely exited the Russian market employed 23,1% of personnel employed in foreign business, they owned about 15,8% of assets, 20,9% of capital invested by international companies in Russia, and in 2021 they generated 15,7% of revenue and paid $3,3 billion in taxes, or 13,2% of the total amount of taxes of foreign companies operating in the Russian Federation at that time.

Read also on Newsky "The economy of the Russian Federation is suffering: a new wave of EU sanctions is approaching" and look at "Boring Pence" YouTube channels.

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