Putin promises rough roads back for Western businesses

President Vladimir Putin on Tuesday, warned Western companies that left Russia  that returning to the Russian market won’t be straightforward.

He was speaking particularly to Western companies that left Ukraine following its invasion of Ukraine.

At a Moscow business forum, he stated that those who exited “defiantly,”  will face significant challenges if they attempt to return.

These included especially  tose who exited by selling assets cheaply under political pressure.

Putin emphasized that the government will scrutinize any buy-back options included in exit deals to ensure fairness.

He also noted that domestic businesses now filling the gaps left by Western firms are unlikely to give up their positions easily.

This stance aligns with Russia’s broader approach toward Western companies post-exit.

For example, Renault, which sold its assets for a nominal sum, may now face substantial costs—estimated at $1.3 billion—to re-enter the market.

This figure represents the investments made by the Russian state and Avtovaz since Renault’s departure.

It further highlighted the financial and strategic challenges for returning companies.

Overall, Putin’s message underscores a tough environment for Western businesses considering a return to Russia.

Thse should expect to be faced with potential financial and operational hurdles shaped by the current geopolitical and economic landscape.

Western companies that “slammed the door defiantly” when they left Russia will not be allowed to buy back the businesses they quit for small amounts of money.

Neither will they be allowed to fill niches that local businesses have taken, President Vladimir Putin said on Tuesday.

Hundreds of Western firms have exited Russia since Moscow sent tens of thousands of troops into Ukraine in February 2022.

Companies have taken different approaches with some selling up.

Others have handing the keys of their companies to existing managers or, in some cases, abandoning the assets altogether.

Some, such as Renault (RENA.PA), McDonald’s (MCD.N), opens new tab and Henkel (HNKG.DE), agreed buy-back options when exiting.

Although the terms of such deals have largely been kept under wraps.

Putin, speaking at a Moscow business forum, said he had asked the government to keep an eye on Western companies that might have buy-back deals.

Media reports say this is to ensure that every case was carefully considered if such deals were activated.

Putin said he respected businesses that had continued to work with Russia, but held a different view for those that left  “slamming the door defiantly.”

“If the niche of a Western company is already filled by a Russian business, then…as we say, the train has left,” Putin said.

He also cautioned Russian business that Western sanctions on Russian individuals and businesses, were not temporary.

He said that even if they were eased other obstacles to doing business would be thrown up.

Figures of the Russian businesses were put at 28,595 according to a finance ministry tally.

“We should not hope for complete freedom of trade, payments and capital flows,” Putin said.

“Nor should we count on Western mechanisms for defending the rights of investors and entrepreneurs.

“Our competitors will always want to weaken and contain us,” Putin said.

“Even if one side makes a gesture and offers to lift or ease something, another method of causing problems for us will be found immediately.”

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