{"id":12923,"date":"2022-05-16T12:41:30","date_gmt":"2022-05-16T09:41:30","guid":{"rendered":"https:\/\/stage.kse.ua\/news\/impact-of-foreign-companies-self-sanctioning-on-rf-economy\/"},"modified":"2026-09-08T13:32:43","modified_gmt":"2026-09-08T13:32:43","slug":"impact-of-foreign-companies-self-sanctioning-on-rf-economy","status":"publish","type":"news","link":"https:\/\/kse.ua\/en\/news\/impact-of-foreign-companies-self-sanctioning-on-rf-economy\/","title":{"rendered":"IMPACT OF FOREIGN COMPANIES SELF-SANCTIONING ON RF ECONOMY\u00b9"},"content":{"rendered":"

Prepared by the KSE Institute team and KSE members of the Board of Directors; 09-15.05.2022<\/i><\/p>\n

KSE DATABASE SNAPSHOT<\/b><\/p>\n

Number of the companies that continue Russian operations <\/b> (KSE\u2019s status \u201cstay<\/b>\u201d) \u2013 580<\/b><\/p>\n

Number of the companies that have reduced current operations and hold off new Investments<\/b> (status \u201cwait<\/b>\u201d) \u2013 422<\/b><\/p>\n

Number of the companies that have curtailed Russian operations<\/b> (KSE\u2019s status \u201cleave<\/b>\u201d) \u2013 1 017<\/b><\/p>\n

As of May 13, we have identified about 2,000 companies and organizations<\/b> and analyzed their position on the Russian market. About half of them are public, for ~ 400 public groups of companies, we also identified (where it was possible) their operating business in Russia (the presence of a controlling stake in a legal entity), which allowed us to calculate the value of capital invested in the country (about $113 billion<\/b>), local revenue (about $200 billion<\/b>), as well as staff (almost 0.7 million people<\/b>). 1,439 foreign companies from 70 countries and 55 industries have reduced, suspended or ceased operations in Russia.<\/b><\/p>\n

As can be seen from the tables below, As of May 13<\/b>th<\/b>, <\/b>companies that declared a complete withdrawal<\/b> from Russia had $27.2bn in revenues<\/b> and $13.8bn in capital<\/b>; companies that suspended their operations<\/b> on the Russian market had yearly revenue of $66.2bn<\/b> and $35.4bn in capital<\/b>. TOP-10 companies-the largest taxpayers ~ $13,7bn of taxes annually – haven’t completely withdrawn yet, although suspended or scaled back.<\/p>\n

\"RF2\"<\/figure>\n
\"RF3\"<\/figure>\n
\"RF4\"<\/figure>\n

If since the beginning of the Russian invasion of Ukraine, the percentage of companies that closed operations in Russia has risen sharply by mid-March, in the last month the ratio of those who leave or stay is virtually unchanged. But during this time we see an increase in the share of those companies that remain in the Russian market. This is mainly due to the expansion of the KSE database with so-called “secondary” companies.\u00a0\u00a0<\/p>\n

\"RF5\"<\/figure>\n

The actions of companies by sector (based on the KSE database, with at least 50 companies representing the industry and with at least 40 companies per country) are shown in the graphs above.<\/p>\n

Impact on stock prices\/capitalization of companies\u2019 HQ<\/b>\u00b2<\/b><\/p>\n

\"RF66\"<\/figure>\n

WEEKLY FOCUS. BANKING SECTOR<\/b><\/p>\n

Foreign banks\u2019 opinions are divided on whether to exit business in Russia or not. Out of the three largest foreign banks in Russia, only one has entirely left the Russian market, and two are considering selling the business, but this is just talking so far.<\/b><\/p>\n

As of April 1st, there were 331 banks in Russia. State-owned banks dominate the banking system. The three largest of them- Sberbank, VTB, and Gazprombank- account for 55% of all assets.<\/p>\n

Twenty-six out of one hundred largest banks are foreign, while the share of foreign capital in the banking system is almost 11%. The list of 13 systemically important banks includes three foreign:<\/p>\n