In March, seven more foreign companies left Russia – KSE research

4 Квітня 2024

Since the beginning of 2024, 30 international companies have left Russia, 7 of which were identified in March. Thus, only 378 foreign firms have completely left the Russian market, 1211 have curtailed operations, and 2170 continue operating without restrictions. 

These findings are part of the KSE Institute’s regular digest under the Self-Sanctions/LeaveRussia project, examining the repercussions of foreign business withdrawals on the Russian economy.

According to the Kyiv School of Economics experts, three business sales and three liquidations occurred in March.

In particular, the popular music streaming service Deezer, global auto component manufacturer Denso, American IT company DXC Technology, leading mineral driller Foraco, Grant Thornton, which provides audit and consulting services (not previously included), German manufacturing company Herpa, and Japanese Teijin.  

At the same time, two partial liquidations occurred last month: IKEA liquidated one of its small legal entities, and Fischer Sports liquidated the legal entity FISCHER SPORTS RETAIL LLC, but the main FISCHER LLC continues to work.  

In addition, we changed the status of the Polish clothing manufacturer LPP Group. A detailed investigation by Hindenburg Research has revealed that the company is still maintaining control over its Russian operations through its headquarters in Poland. Furthermore, the investigation uncovered plans by the company to modify barcodes in order to hide the true origin of goods, a strategy aimed at retaining control over the flow of products. 

The KSE Institute also doubted this exit and decided to downgrade the status until additional evidence from both sides was available. That is why seven exits were actually identified, although the technical difference is six.

Thus, as of April 1, 2024, 2,170 international companies (57.7% of the total number of entries in the KSE database) continue to operate and do not plan to leave the Russian market. 

Another 1211 foreign firms, or about 32.2%, have curtailed operations and announced their intention to leave the Russian Federation. Only 378 (10.1% of the total number of entries in the KSE database or 26.1% of companies that received income in Russia in 2022) have finally severed ties with the aggressor.