As Moscow and Washington discuss how to end the war in Ukraine, one of the many questions on investors’ minds is whether the corporate exodus from Russia in opposition to the February 2022 invasion of its neighbour may be reversed.
As long as broad Western sanctions on Russia remain in place, that looks unlikely, but should U.S. President Donald Trump’s administration seek to ease restrictions, it could open the door for some companies to return to what was once a high-growth market.
Here is a rundown of the situation:
WHO EXITED AND HOW?
More than a thousand companies from McDonald’s to Mercedes-Benz have left Russia in the last three years by selling, handing the keys to existing managers or abandoning assets. Others like Danone and Carlsberg had their assets seized and a sale forced through. Western companies have acknowledged losses totalling $107 billion in write downs and lost revenue, according to a Reuters analysis in March 2024. Kirill Dmitriev, head of the Russian Direct Investment Fund, says U.S. companies have lost $324 billion by leaving Russia.
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Companies such as McDonald’s, Renault and Henkel agreed buyback options when exiting. France’s Renault sold its majority stake in Russian carmaker Avtovaz in May 2022 for reportedly just one rouble, but with a six-year option to buy it back.
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Some food and healthcare companies, including Procter & Gamble, PepsiCo and Mondelez, say they stayed on humanitarian grounds to continue supplying Russians with basic goods.
WHICH SECTORS ARE LIKELY TO WANT TO RETURN FIRST?
After the highest-level U.S.-Russian meeting since the Ukraine war began this week, Dmitriev said, without giving further details, that he expects a number of U.S. companies to return as early as the second quarter.
The most likely to return are those operating outside sanctions, such as retailers and food producers, rather than those in sectors such as energy and finance.
Dmitriev said he believed U.S. oil majors that had been successful in Russia would “at some point” return.
Senior lawmaker Anatoly Aksakov this week said he thought Visa and Mastercard would soon restore payment services.
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