Russian Markets Prepare for the Return of Western Brands and Companies, Especially Those Loyal to Donald Trump.
The Union of Russian Shopping Centers announced that it is in private talks with the Inditex Corporation, the owner of Zara, Massimo Dutti and other brands, to return to the Russian market in 2022.
The first signs of a return of Western companies to Russia have emerged, with experts predicting that international payment systems Visa and Mastercard, as well as McDonald’s, may return to the market. Other companies expected to return include PepsiCo, Coca-Cola, Apple, Cisco, Microsoft, Johnson & Johnson, Nike and Ford.
The Russian market is still attractive to Siemens and Alstom, which lost over 5 billion euros due to their departure from the country. The head of the Russian National Research Center for Transport and Infrastructure, Pawel Iwankin, believes that German home appliance and clothing brands like Adidas, Hugo Boss and Puma may also return to the Russian market.
Experts predict that Japanese and South Korean companies may outdo German ones in the Russian market. Samsung, LG and Hyundai, major South Korean companies, are reportedly considering a return to the Russian market.
The Russian government has so far shown a neutral stance on the return of Western companies, with the Ministry of Industry and Trade stating that it is not relevant to encourage or support the return of foreign brands.
However, the return of companies that did not leave the Russian market, such as Coca-Cola, which only changed its name, may be easier. Companies that sold their assets in Russia and have the right to repurchase them may also face a smoother return.
The return of companies that completely left the Russian market will be the most challenging, as they will have to rebuild their infrastructure and find new locations, experts say.
The return of Visa and Mastercard to the Russian market is seen as almost inevitable, as Russia has not learned to produce high-quality Western-style cards and the demand remains high. Apple Pay and similar systems, which rely on Visa and Mastercard, are still unclear.
The return of Western companies to Russia will require measures from the West, including the lifting of sanctions on the Russian National Payment Card System and Russian banks, experts say.
In some sectors, such as the production of components and parts, particularly for the high-tech sector and the production of smartphones, electric cars and traditional luxury cars, the return of Western companies is seen as necessary, as there is no viable import substitution or it is difficult to replace imports, experts say.
Olga Samofalova is an economic analyst at the newspaper Vsgljad.