There are a whole host of companies that have decided to stay in Russia. among them is the Procter & Gamble corporation or the toothpaste manufacturer Colgate. Firms are likely to keep their profits and maintain the position they have won on the Russian market. The reason for this persistence, on the other hand, often lies in the fact that, compared to previous months, divestments of this company are much more complex.
The general editor of the company Unilever Alan Jope told Reuters that his company is responsible for 2,000 employees in Russia and does not want its three Russian production lines to fall into the hands of pro-Kremlin magnates or the state itself.
Several companies cannot find a suitable buyer for their Russian branches. You are talking about the company Danone, which announced its departure from the Russian market at the beginning of the year. The manufacturer of tobacco products, Philip Morris, then stated that it wanted to end its Russian operations at the end of the year. So far, however, he has not received the consent of the Russian counterpart.
if the company will postpone the exit from the Russian market, then it will be difficult, Nabi Abdullayev from the consulting company Control Risks commented on the situation to Reuters, saying that the Russian state as a buyer of some of the companies is currently complicating sales and demanding a fifty percent discount from the requested price. Kremlin spokesman Dmitry Peskov said that companies will enter the Russian market in accordance with the set rules.
The Carlsberg company warned on Thursday that the Russian companies could shut down the company, in order to strike the sweat of the employees at the previous level. In response, Kremlin spokesman Dmitry Peskov said that even in Russia there is a law that protects employees. He added, however, that it would be a very lengthy process.
McDonalds was not lazy
Only the company was as determined about its Russian character as you McDonalds fast food chef. He sold his Russian restaurant in May, so only a few months after the wolves came. Now, however, there are far fewer potential purchasers of similar projects in Russia, also because many prospective buyers are subject to sanctions from the West. You complicate such a transaction.
The Russian economy as a whole did not achieve such negative results last year as originally expected. Gross domestic product between the years fell by only 2.5 percent, and demand from Russian consumers did not increase dramatically. That is also why many companies adjusted their forecasts and the risk of potential losses in the event of leaving the Russian market increased, as British American Tobacco informed you.
In order for these companies to use the potential of the Russian market as much as possible, conduct audits now and show more authority through the Russian local manager. Avoid doing business with Russian banks and blacklisted individuals. Companies like you, Unilever, defend their Russian behavior by saying that they supply only the most basic goods to the Russian market and that they will not take a day’s worth of profits from Russia.
