Page 50 - RusRPTFeb23

A vast number of firms headquartered in the European Union and G7 countries continue to operate and invest in Russia, according to a study on equity investments made by Western companies.
Less than 9% of about 1,400 EU and G7 companies that had subsidiaries in Russia before Moscow invaded Ukraine had divested at least one subsidiary in the country by November 2022, according to data obtained by professor Simon Evenett, from the University of St. Gallen, and and professor Niccolò Pisani, from the International Institute for Management Development. This is despite the harshest ever Western sanctions against Moscow and the media reports of multiple companies’ exits from the country since the start of the Ukraine war.
"These findings call into question the willingness of Western firms to decouple from economies their governments now deem to be geopolitical rivals," the study's authors say in a statement.
US-based companies accounted for more exits (under 18%) than those based in the EU (8.3%) and Japan (15%).
Some of the world's largest companies, such as Ford, Renault, McDonald's, Ikea and Shell are among the dozens of Western businesses which have completely pulled out from Russia, according to a list compiled by Yale University.
Yet, many others, such as the consumer goods giant Unilever, US fast food franchise Subway and Italian pasta-maker Barilla have continued to operate in the country.
The majority of Western companies that remain fully active in Russia are German, according to the study.
4.4 Fixed investment
Russia -Fixed capital investment 2012 2013 2014 2015 2016 2017 Mar-2018
Investment (% of GDP)
24.3 22.9 22.0 21.4 22.5 23.5 15.3
GDP: Gross fixed investment capital formation (USD mn)
471,337 496,982 428,573 276,240 280,350 342,294 58,303
source: CEIC
The Russian government has prepared a list of investment programs in nineteen branches of industry, with their implementation estimated to be worth of 5.7 trillion rubles ($8.3bn), Deputy Prime Minister Denis Manturov said on January 11.
50 RUSSIA Country Report February 2023 www.intellinews.com