Breakingviews - Western companies have 50 bad ways to leave Russia

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Multinationals are still planning their Russia exit. There are many ways for a company to leave Russia, but all of them are bad, writes dasha_reuters:

Follow- McDonald's said on May 16 it had started a process to sell its restaurants in Russia. The world's largest burger chain, which owns about 84% of its nearly 850 restaurants in Russia, will take a related non-cash charge of up to $1.4 billion. McDonald's said it would ensure its 62,000 employees in Russia continue to be paid until the close of any transaction and that they have future jobs with any potential buyer.

- Renault said on May 16 it would sell its majority stake in carmaker Avtovaz to a Russian science institute with a six-year option to buy it back. Citing two sources familiar with the situation, Reuters reported the sale price was just 1 rouble. The French carmaker’s 100% stake in Renault Russia will go to the city of Moscow.

- Turkish shoe retailer FLO Magazacilik is in talks to buy more than 100 stores owned by sportswear brand Reebok in Russia, FLO Chairman Mehmet Ziylan said on May 16. - Russia should confiscate property owned by Westerners in response to a proposal by U.S. President Joe Biden to transfer the frozen assets of Russia's elite to Ukraine, senior Russian lawmaker Vyacheslav Volodin said on May 1.Editing by Peter Thal Larsen, Streisand Neto and Oliver TaslicOpinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

 

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Western companies have 50 bad ways to leave RussiaMultinationals can sell out like McDonald’s, shut down like Zara owner Inditex or shrink operations like Nestlé. Hopes of finding a Chinese or Indian buyer may prompt some to drag their heels. But the threat of forced nationalisation gives others an incentive to hurry. dasha_reuters Look what happened in Iran: copycats quickly took over the market. dasha_reuters dasha_reuters Paywall. Avoid.
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