About 2,000 companies want to leave Russia, it takes 8 years to consider their applications

About 2,000 foreign companies have submitted applications to withdraw from the Russian market for regulatory approval, but it will take at least 8 years to review their applications.

Source: KSE Institute monitoring as part of the Self-Sanctions project

Details: Since recently, every Western company that wants to withdraw from the Russian market and sell its assets must directly contribute to the aggressor state's budget. Until March, companies leaving Russia could choose between a "voluntary contribution" to the Russian budget, which amounted to 10% of the sale price, or agree to a deferred payment from the sale for several years.

Currently, about 2,000 applications for withdrawal from the Russian market are waiting for approval, but it will take at least 8 years to review them all, analysts estimate.

Monitoring data shows that 213 international companies (6.7%) have left the Russian market. They provided at least 331,500 jobs, and annual revenue was US$47.6 billion. In 2021, they paid US$3.3 billion in taxes to the Russian budget.

In addition, only 15.7% of foreign companies that had opened local companies and received revenue in Russia have completely shut down their operations and finally left the Russian market. Another 28% are waiting, and 23.8% of companies with foreign investments continue to operate in the aggressor market without restrictions. 

Another 32.5% announced plans to curtail their operations and leave the Russian Federation soon.

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