Western Companies Remain in Russia Despite Tensions

The Washington Post reported that despite pledging to pull out of Russia after the Ukrainian crisis began, many Western companies still continue to operate in Russia.

And according to NewspaperSome companies have captured large market share where their competitors have gone.

She notes that researchers at the University of St. Gallen in Switzerland found that less than nine percent of Western companies with subsidiaries in Russia had left the country by November last year.

Western companies that stay often rely heavily on Russian businesses, and the losses from an exit are likely to outweigh the potential damage to their brands remaining in the country.

Some have announced that they will suspend or reduce operations, but will continue to trade. Others have said they will sell their Russian assets but are still looking for buyers or trying to lower the cost of leaving.

Source: News

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