Thousands of Western firms continue to operate in Russia – EC

Many foreign investors continue to do business in Russia despite Russia's aggressive war against Ukraine.

This was reported by DW.

The European Commission's response to a request from German MEP Moritz Körner states that only about 40% of international companies have decided to leave Russia or are already doing so.

In its response, Brussels relies on data from the Yale School of Management and the Kyiv School of Economics (KSE). According to the latter, as of September 18, 1410 foreign companies continue to operate in Russia (+26 in two weeks).

These include, in particular, the German pharmaceutical company Stada and the Fresenius group of companies specializing in medical equipment and healthcare. In the past, they justified their work on the Russian market by the need to provide medical care to ordinary Russians.

At the same time, according to KSE, the number of companies that have shut down their operations in Russia as of September 18 reached 1,225. Meanwhile, 275 foreign companies have completed their exit from the Russian market.

"Every European company that continues to make a profit in Russia is directly supporting Putin's military machine with its taxes to the Russian state," Körner said, commenting on the European Commission's response.

According to the German politician, the EU should strengthen its sanctions regime accordingly.

"The activities of European companies in the Russian market should become economically unprofitable for them," Körner added.

Author – Anastasiya Glotova, 22/09/2023