President Putin instructs government to prepare for the return of foreign companies
Russian President Vladimir Putin has instructed the country's government to lay the groundwork for the return of foreign companies that left the domestic market due to the Ukraine conflict.
Many major corporations, including Microsoft and McDonald's, have cut ties with Moscow in 2022, citing Russia's military campaign in Ukraine. The exodus of foreign brands has also been fueled by sweeping Western sanctions against Russia.
President Putin has repeatedly said that foreign businesses leaving are of their own choosing and Russia will always welcome them back. However, he has stressed that the interests of Russian companies must also be taken into account.
After a meeting with domestic lobby group Delovaya Rossiya (Business Russia) earlier this week, President Putin instructed the government to consider proposals regarding the conditions under which “individuals from unfriendly countries” can do business in Russia and acquire real estate and shares.
Russia's "unfriendly countries" list now includes most EU members, as well as the US, UK, Canada, Japan, South Korea, Australia and New Zealand. Last week, Russian Finance Minister Anton Siluanov said restrictions on investments from "unfriendly" countries could be eased.
In May, Mr Putin said Russia must develop a “pragmatic” approach to foreign companies and evaluate their past actions on a case-by-case basis. “If a company’s return is beneficial to us, we should allow it. If not, we should find a thousand reasons to prevent it,” he said.
Russia’s investment envoy, Kirill Dmitriev, said in April that US companies had lost an estimated $300 billion by leaving the Russian market. The US and Russia resumed direct talks earlier this year and have agreed to gradually restore ties severed by the Biden administration by 2022.
