The risks are rising for Western firms in Russia. So why are so many staying put? | CNN Business

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When Russia launched its full-scale invasion of Ukraine in February 2022, a slew of Western companies left in protest. But some of the world’s biggest firms -- including Nestlé, Heineken and snack maker Mondelez -- stayed put.

More than a year later, companies that chose to remain in Russia are in an increasingly sticky position: Leaving has become costlier and more complex, while staying has grown riskier. Companies now find themselves caught between Western sanctions and public outrage on the one hand, and an increasingly hostile Russian government on the other. The Kremlin is making it more difficult for Western firms to sell their Russian assets — and imposing steep discounts and punitive taxes when they do.

The companies also say they are delivering vital supplies to ordinary people and some argue that abandoning their Russian assets would only boost the Kremlin’s war chest by giving it easy access to new sources of revenue. To be sure, selling up is not straightforward and comes with hefty penalties. Companies are obliged to sell their assets at a 50% discount to market value and pay the Kremlin a sizable fee.

 

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