Foreign companies in Russia cut more than 230,000 jobs in 2022

Foreign companies in Russia reduced their staff by more than 230,000 people in 2022 compared to 2021, the year before the full-scale war.

Source: monitoring by the KSE (Kyiv School of Economics) Institute

Reportedly, about half a million employees of foreign companies in the Russian Federation have been partially dismissed or faced substantial changes in their pay due to the departure of 288 international companies from the country and ownership passing to local legal entities and individuals.

Quote: "As long as key professionals continue to leave Russia, Russia's technological lag behind the West amid the sanctions will only increase. At the same time, one of the triggers for the exodus of Russian professionals was the exodus of foreign professionals from Russia, which led to the destruction of Russia's economic, production, logistical and technological ties with a significant part of the world," analysts note.

In total, as of 15 October [2023], 288 international companies, or 23.2% of the companies that earned income in Russia in 2022, have completely ceased operations in Russia. A further 1,221 foreign businesses (34.5% of the total) have closed down their operations and announced their intention to leave the country.

However, 1,478 of the companies monitored by the KSE Institute (41.8% of the total) have no plans to leave the Russian market yet and continue to operate without any changes. Another 548 (15.5% of the total) have suspended new investments in Russia and are biding their time.

Background:

• 11 foreign companies left the Russian market in September 2023, which brought the total number of businesses that have left the Russian Federation to 284, and almost 2,000 more continue to operate or are waiting it out.

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