Western firms still in Russia weigh pros and cons of leaving

Should they stay or should they go now? Eighteen months after the start of the war in Ukraine, many Western companies in Russia are still assessing the pros and cons.

According to a count by the Yale University, around a hundred companies from the G7 nations are still operating in Russia, but the numbers appear to be dropping.

"We are continuing to see a trend towards a reduction in the activities of Western companies on Russian territory," Julien Vercueil, an economist specialising in Russia, told AFP.

"The war is creating unfavourable conditions for foreign companies in Russia, whatever they decide to do," Vercueil said. If they quit Russia, especially if they do so in a hurry, these companies "can lose a lot, but it will be once and for all," he said.

According to analysis by The Financial Times, which examined the annual accounts of 600 European multinationals, they lost at least 100 billion euros ($108 billion) in total "following the sale, closure or reduction of their Russian activities."

French carmaker Renault, for example, suffered a loss of 2.2 billion euros as it pulled out of Russia, one of its main markets, in May 2022.

But it is the oil majors that have lost the most. BP, one of the first to fully withdraw from Russia shortly after the fighting began in Ukraine in February 2022, has taken an estimated hit of more than 22 billion euros.

On the other hand, to keep doing business in Russia exposes Western firms to "significant reputational costs", Vercueil said.

Ukrainians are vocal in accusing such companies of "financing the Russian war through the profits they make on Russian territory," he said.

Many Western companies that have stayed in Russia say they are ensuring the livelihoods of...