- The “Evropeisky” mall in Moscow was once a symbol of a Russia integrated into the global consumer economy, with atriums named after cities like London, Paris and Rome.
Chris Weafer of Macro-Advisory, a consultancy specializing in Russia, said the Russian government “is adopting a carrot-and-stick approach to foreign business,” with talk of nationalization balanced out with government help for those who stay. A key reason, Weafer said, is the Kremlin’s desire to avoid mass unemployment.
“It will compound the clear message to the global business community that Russia is not a safe place to invest and do business,” she said , adding that “Russia may also invite legal claims from companies whose property is seized.” But keeping businesses operating in Russia — even with government intervention — will not be easy. That’s because the conditions that led foreign companies to leave Russia are still in place: international sanctions, disruption to the supply chain and pressure from customers in Europe and North America.