Companies find it’s not so simple to leave Russia – BusinessMirror

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When Russia invaded Ukraine, global companies were quick to respond, some announcing they would get out of Russia immediately, others curtailing imports or new investment. Billions of dollars’ worth of factories. Know more:

A woman exits a newly opened Maag store, a former Zara flagship store, in Moscow, Russia on April 27, 2023. When Russia invaded Ukraine, companies were quick to respond, some announcing they would get out of Russia immediately, others vowed to curtail sales and new investment. More than a year later, it’s clear: Leaving Russia isn’t as easy as the first announcements might have made it seem.

Many companies are simply staying put, sometimes citing responsibility to shareholders or employees or legal obligations to local franchisees or partners. Others argue that they’re providing essentials like food, farm supplies or medicine. Some say nothing. “The quality hasn’t changed at all, everything has stayed the same,” he said. “The prices haven’t changed much, taking into account the inflation and the economic scenarios that happened last year.”

But the Kremlin keeps adding requirements, recently a “voluntary” 10 percent departure tax directly to the government, plus an understanding that companies would sell at a 50 percent discount. She called the Russia business a deeply integrated part of Carlsberg. Separating it has involved all parts of the company and more than 100 million Danish kroner in investment in new brewing equipment and IT infrastructure, Frederiksen said.

The 10 percent exit tax mandated by Russia is particularly tricky. American companies would have to get permission from the Treasury Department to pay it or run afoul of US sanctions, said Maria Shagina, a sanctions expert at the International Institute for Strategic Studies in Berlin.In a rare, frank explanation, Steffen Greubel, CEO of German cash and carry firm Metro AG, said at this year’s shareholder meeting that the company condemns the war “without any ifs, ands or buts.

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