In a shift of focus, Russia is looking to bring back Western companies that never fully cut their ties with the country.
Prime Minister Mikhail Mishustin recently discussed how these companies, which continued to operate in some capacity after the outbreak of hostilities in Ukraine, could be the first to return to the Russian market.
Mishustin made it clear that the government recognizes the responsible approach taken by these companies, which kept services running for customers and supported their employees, even when faced with considerable challenges.
Maintaining Operations Amid Crisis
While many Western companies exited Russia under intense pressure from their home governments after the conflict began, some chose to stay, albeit through subsidiaries.
These companies, though affected by financial losses, preserved jobs, maintained technological operations, and kept their doors open for a potential return.
Mishustin emphasized that these businesses should now be given a fair chance to come back fully into the Russian market, as they did their part during difficult times.
Negotiations Underway for Foreign Company Returns
Talks about the return of foreign companies have gained momentum, particularly as Russia and the U.S. began discussions in February.
On March 14, President Vladimir Putin revealed that Russia was already engaged in talks with some foreign businesses about their return.
These negotiations are said to be happening “behind closed doors,” with some foreign partners taking the initiative.
The discussions reflect Russia’s willingness to re-engage with foreign firms, especially those that maintained connections despite the political climate.
Putin Orders Framework for Foreign Business Reentry
In another move toward welcoming foreign companies back, Putin issued an order on March 18 to develop a formal framework for facilitating their return.
He pointed out that some businesses had sold their operations at discounted prices when they exited Russia.
However, Putin clarified that when these companies return, they should not be allowed to repurchase their businesses at the same low price.
A Potential 350 Companies Could Return by 2025
Experts predict that up to 350 foreign companies might return to Russia by 2025, with U.S. businesses potentially resuming operations as early as the second quarter of 2025.
This signals a possible shift in the business landscape and suggests that Russia is eager to re-establish its market with foreign partners who are willing to return and reinvest in the country’s economy.