the strange situation of thousands of employees of Western companies in Russia

While dozens of Western companies have announced the end of their activities in Russia, around 200,000 of their employees are still paid in the country. Between fear of seizure and hopes of return, companies do not cut the wage tap.

Marina* works as a designer at Ikea in Saint Petersburg. At least she was really working there until March 3, when the Swedish company announced, abruptly, that it was closing its 17 stores in Russia. Since then, Marina still goes to the office every day. His salary is still being paid. But the situation becomes strange. “The first 2 or 3 weeks was great fun“, explains the young woman. “We did training, we gave free rein to our creativity. It was even very pleasant because there was no longer the pressure of work. But now I feel like I’m locked in a bell like in a reality show. And it’s not until you leave work, get out of that bell that you become a real person again.“.

“I have never been in such a happy work environment”

Marina’s case is far from isolated. They would be today more than 200,000 employees of Western companies in Russia to be thus always paid, but with little or no activity. After the last deliveries to be made and the maintenance operations, there is almost nothing left for them to do. Marina takes the opportunity to train in foreign languages. Some like Angela, architect at Ikea, accepted a part-time job to usefully occupy their days. “It’s a shame to say“, explains Angela, “but despite the prospect of losing my job and all the horror of what is happening in Ukraine, my work has become a fairy tale. We seem to have returned to the time of communism. You are not overworked, you are told that you are loved and you receive a high salary. I have never been in such a happy work environment.“

Listening to the employees we contacted, Ikea keeps in touch with them and acts as if the company plans to reopen soon. The sign has moreover announced on May 9 that it is maintaining salaries until at least August. She’s not the only one. McDonald’s is still paying its 62,000 employees in Russia despite restaurant closures. The same goes for the workers at the Renault factory in the suburbs of Moscow and the Michelin production site in Davydovo, whose chains have been shut down for weeks. For manufacturers, production could not resume anyway due to the shortage of components. “Renault has a list of about a hundred components currently unavailable in Russia“explains a good connoisseur of the company.

“Many companies are hunkering down”

Some are lowering the iron curtains when they have absolutely no intention of leaving Russia. This is the case of Decathlon, which is currently closing its stores one behind the other, as the stock runs out.s, due to the impossibility of ensuring a stable supply. “There are very few companies that have completely left Russia“explains a representative of the business community who requested anonymity.The luxury sector has drawn a line under the country because the sanctions prohibit the sale of luxury items worth more than 300 euros, and they obviously have no future under these conditions. But many companies are hunkering down and waiting to see what happens. They just froze their positions“, he continues. Others reserve a way back, like the main audit and consultancy firms Westerners, who have sold their activities to their local staff, who continue to work under another brand.

If many companies choose to continue paying their Russian employees, it is also because the cost is bearable, in a country where the average salary is around 500 euros, and often less for a factory worker. It remains to be seen how long this situation can last. According to a study by the boston consulting group, investors overwhelmingly believe that it will take between two and five years before they can return to the Russian market. The Russian government, which had repeatedly mentioned the possibility of placing under “external management” – in other words, of seizing the assets of companies that would hastily leave Russia, has spoken about it much less recently. The bill is slow to reach the Duma and it seems that the text has been seriously watered down. In business as in diplomacy, you should never insult the future.

*All first names have been changed at the request of the witnesses

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