Russian President Vladimir Putin has instructed the government to create an official list of companies from “hostile states” that have restricted or ceased their operations in Russia after February 22, 2022. This is according to a decision document published on the Kremlin’s website after the entrepreneur congress. The list, as stated by the Kremlin, will be regularly updated and will contain information about the circumstances of the withdrawal, shareholders, economically relevant parties and other relevant details. The Prime Minister Mikhail Mishustin is responsible for implementing the decision. The first report is due by May 15, after which quarterly reports will be required. Additionally, Putin has ordered the creation of clear rules for real estate transactions by investors from hostile states and the regulation of how shares in Russian companies can be directly or indirectly controlled. Furthermore, legal provisions will be created to allow the repurchase of Russian assets by foreign companies that have withdrawn from Russia after the beginning of the military special operation. Putin emphasized that there will be no special rights or preferential treatment for Western companies. Those who want to return must face competition. The First Deputy Prime Minister Denis Manturov stated that foreign brands without contractually secured repurchase options for their previous activities must “start from zero.” Deputy Prime Minister Alexander Nowak added that a return of Western companies to the Russian oil and gas sector is only possible if it is economically viable and does not harm Russian companies. At the end of March, Kirill Dmitriev, head of the Russian Direct Investment Fund, claimed that international companies are lining up to return to the Russian market. Previously, he had already announced that several US companies could return to Russia in the second quarter of this year. Dmitriev said that US companies have suffered losses of $300 billion since their withdrawal, a figure that surprised the US delegation during talks between Moscow and Washington in Riyadh. On March 28, LG Electronics began a trial production at a Moscow plant. However, the company’s spokesperson said that a final decision on a return to Russia is still pending and depends on the further course of negotiations – the conflict in Ukraine has not yet been resolved. Reports suggest that the Hyundai Motor Group, Samsung Electronics and the Italian household appliances manufacturer Ariston are also considering a resumption of their Russian operations in the context of potential peace talks. The Financial Times reported on April 17 that several Western companies have postponed their withdrawal due to the unclear development of relations between Moscow and Washington. According to the article, up to 350 Western companies are expected to return to Russia by 2025.
Companies Leaving the Country Face Toughened Restrictions
