Russia "coldly" welcomes Western businesses wanting to return?

Russian officials say Moscow is opening the door for Western companies to return at any time, as long as they play by their "rules."

Russian President Vladimir Putin speaks at the annual congress of the Russian Union of Industrialists and Entrepreneurs in Moscow, March 18. (Source: MSN)

The conditions for Western businesses to return to the Russian market are not as simple as rumored, Moscow will carefully review each application.

Contrary to speculation that many Western businesses are looking to return to Russia amid a recent US diplomatic move to be friendlier toward Moscow, Kremlin officials, including President Vladimir Putin, have made it clear that any re-entry into the market would come with strict conditions.

Once you walk away, it's not easy to turn back.

President Putin made it clear that foreign businesses will not be allowed to buy back their assets in Russia at prices lower than when they sold them, nor will they enjoy preferential treatment.

The Kremlin chief affirmed that Moscow is building a legal framework to facilitate the return of Western businesses, but still maintain "advantages" for domestic manufacturers.

At the annual congress of the Union of Industrialists and Entrepreneurs of Russia, also a major business lobby group in the world's fourth-largest economy (according to the IMF's ranking, 2024), President Putin said: "Each agreement will need to be considered individually and carefully."

More than 1,000 companies have left Moscow in the three years of the Russia-Ukraine conflict (since February 2022), for various reasons, in various ways and on various terms. Some companies sold their assets in Russia or transferred their management to the current managers; others abandoned their assets in Russia altogether; some even had their assets confiscated and sold...

As a result, Putin said Moscow would scrutinize Western companies that have deals to buy assets, ensuring that each case is carefully considered. He said he would respect companies that continue to work with Russia, but would “look differently” at those that “slam the door” when they leave.

Companies that leave under political pressure and sell their assets for symbolic prices will not be able to buy them back at that price. "And when the vacuum they leave is filled by Russian business, as we say, the ship has sailed," the Russian president said.

Regarding this issue, on March 20, answering TASS news agency, Deputy Chairman of the Russian Security Council Dmitry Medvedev also said that returning to the Russian market will be a challenge for Western companies that withdrew from the country's market after the outbreak of conflict in Ukraine.

Mr. Medvedev affirmed that Russia did not expel any Western companies, but they left on their own. He also reiterated that in March 2022, he himself warned Western companies that "flee" from Russia that - it will not be easy to return to this country's market in the future, regardless of the reason for their withdrawal.

The rules will have to change

Recently, at the same time as the first direct negotiations between the US and Russia on the conflict in Ukraine, held in Saudi Arabia (February 2025), the media has been abuzz with information about a "wave" of Western companies wanting to return to the Russian market as soon as geopolitical tensions are likely to ease.

President Putin has ordered the drafting of “transparent” rules for Western companies wanting to return, ensuring “honest and responsible behaviour” in Russia. The Russian Union of Industrialists and Entrepreneurs said the rules would be finalised by April.

Kirill Dmitriev, President Putin's special envoy for international economic and investment cooperation, said that US companies will be required to form joint ventures with Russian enterprises that have taken over their market shares.

At the same time, First Deputy Prime Minister Denis Manturov said that the beneficiaries on the Russian side will need to retain control over these joint ventures and the technologies involved. “The principles of foreign investment and localization must also change,” Manturov said at the Congress of the Union of Industrialists and Entrepreneurs of Russia (March 18).

While the Russian economy has adapted to layers of Western sanctions and finished replacing some foreign brands with domestic options, Moscow has shown interest in easing restrictions on Western companies returning to its market, as part of potential negotiations to end the conflict in Ukraine.

However, also at the event of the Union of Industrialists and Entrepreneurs of Russia, President Putin was quite cautious when warning Russian businesses - "Western sanctions against Russian individuals and companies are not temporary. Even if they are eased, other barriers may still appear."We should not expect complete freedom in trade, payments and capital flows. Competitors will always want to weaken and restrain us," the head of Russia said.

According to statistics from the Russian Finance Ministry, Moscow is currently subject to more than 28,500 sanctions from the West.

Trade between Russia and the US remains minimal, with US exports to Russia expected to reach only around $500 million in 2024, while Russian exports to the US will reach around $3 billion.

Source: https://baoquocte.vn/nga-lanh-lung-don-tiep-cac-doanh-nghiep-phuong-tay-muon-quay-tro-lai-308372.html