Russia has issued a stark warning to Western bosses thinking of returning to the country to do business.
Nearly 475 foreign firms closed up shop in the wake of Vladimir Putin’s full-scale invasion of Ukraine in February 2022
Among them were internationally renowned brands such as McDonald’s, Starbucks, Ikea, British energy giant Shell, and Japanese tyre maker Bridgestone.
Russia’s economy has come under growing strain, with some experts predicting it could be about to hit the buffers as money runs out to fund its war in Ukraine.
With peace talks underway and thawing relations between Russia and the US, many firms may be eyeing a return to business as usual in the country. However, the Kremlin appears to be in no mood to welcome them back.
Russia’s Industry and Trade minister, Anton Alikhanov, told reporters on Thursday: “There will be a price to pay for past decisions.”
He added: “We are not waiting for anyone with open arms.”
Denis Manturov, the first deputy prime minister of Russia, said the Kremlin’s priority was to support domestic businesses and those from the Eurasian Economic Union.
“We will clear for our market the ones of interest for ourselves,” he said on Thursday.
Some Western analysts, though, question whether firms will be in a rush to invest in Russia again, given the scale of corruption and lack of legal protection.
Edward Verona, a senior fellow at the Atlantic Council’s Eurasia Centre, wrote: “Taking another chance on Russia might seem appealing to some.
“After all, memories can be short in the business world:”
However, he emphasised that good deals may not be enough to lure back Western companies still concerned about the safety of non-Russian staff and the rule of law.
