The Financial Times reports that Western companies operating in Russia are facing increasing challenges as they try to leave the country. New restrictions and costs imposed by the Russian government are slowing down their departure intentions, and many companies are reconsidering their decision to exit Russia altogether.
One of the major obstacles facing these companies is finding suitable buyer candidates for their Russian operations who comply with Western sanctions and are acceptable to both parties involved. As a result, many companies have already cancelled their departure plans, citing difficulties in finding such buyers.
According to Alexandra Prokopenko, a researcher at think tank Carnegie Russia Eurasia, the economic situation in Russia and rising consumer behavior make it an increasingly attractive market for Western companies. However, this dilemma has led some companies to reverse their plans to exit the country altogether.
Finnish companies like Bang & Bonsomer, Nor-Maali, SRV, and Tikkurila are among those adapting their operations in response to the conflict in Ukraine. For example, Bang & Bonsomer has suspended new investments while Nor-Maali has stopped investing and is in the process of exiting. SRV has sold most of its holdings, while Tikkurila is complying with sanctions and working towards exiting Russia as soon as possible.
Despite these challenges, some Western companies remain optimistic about the long-term prospects of doing business in Russia. According to Prokopenko, many of these businesses see Russia as a strategic market that offers significant potential for growth and profitability in the future.
