Putin's aide claims "Global firms lining up to return to Russia"
Multinational corporations are reportedly exploring the possibility of re-entering the Russian market as discussions surrounding a ceasefire in Ukraine progress. According to Kirill Dmitriev, President Vladimir Putin’s special economic representative...
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Multinational corporations are reportedly exploring the possibility of re-entering the Russian market as discussions surrounding a ceasefire in Ukraine progress.
According to Kirill Dmitriev, President Vladimir Putin’s special economic representative and CEO of the Russian Direct Investment Fund, foreign firms that had withdrawn from Russia due to sanctions tied to the Ukraine conflict are now contemplating a return. His comments followed a report from Korea Times indicating interest from South Korean companies in resuming operations in Russia amid ongoing US-led ceasefire negotiations between Moscow and Kiev.
“Global companies are lining up to return to Russia, signaling renewed confidence and fresh opportunities in one of the world’s largest markets,” Dmitriev stated on X on Friday.
In the past three years, over 1,000 Western firms, ranging from prominent retail brands to major automotive manufacturers, have exited the Russian market. However, as ceasefire talks gain traction, significant South Korean corporations are reportedly intensifying feasibility studies regarding the resumption of their Russian operations. This renewed interest underscores Russia's strategic importance as a market, especially amidst increasing tariff pressures from the US.
Sources indicate that LG Electronics is among the first to reconsider its position, having recently partially resumed operations at its home appliance factory in Moscow, which produces washing machines and refrigerators. An LG official explained, “The move is aimed at preventing deterioration of production facilities that have been idle,” according to the Korea Times.
Hyundai Motor Group, which with Kia ranked as the top two automotive brands in Russia in 2021, is also evaluating the potential re-entry into the Russian market. The group sold its St. Petersburg plant for a nominal fee of 10,000 rubles, with a buyback option valid for two years, meaning a decision on restarting production must be made before the end of 2025.
Earlier this week, Italian household equipment manufacturer Ariston announced its return to the Russian market after exiting in 2022.
This development appears to signal an emerging trend of comebacks and buybacks by prominent foreign brands amid shifting US relations with Russia.
Russian Prime Minister Mikhail Mishustin articulated on Wednesday that each company's situation would be assessed individually. He noted that foreign firms that left Russia “under government pressure” but retained “jobs, contacts, and technologies,” along with a buyback option, might be allowed to return. Mishustin also mentioned that companies with unique expertise would be welcomed, provided they comply with localization and investment requirements.
Ian Smith for TROIB News
According to Kirill Dmitriev, President Vladimir Putin’s special economic representative and CEO of the Russian Direct Investment Fund, foreign firms that had withdrawn from Russia due to sanctions tied to the Ukraine conflict are now contemplating a return. His comments followed a report from Korea Times indicating interest from South Korean companies in resuming operations in Russia amid ongoing US-led ceasefire negotiations between Moscow and Kiev.
“Global companies are lining up to return to Russia, signaling renewed confidence and fresh opportunities in one of the world’s largest markets,” Dmitriev stated on X on Friday.
In the past three years, over 1,000 Western firms, ranging from prominent retail brands to major automotive manufacturers, have exited the Russian market. However, as ceasefire talks gain traction, significant South Korean corporations are reportedly intensifying feasibility studies regarding the resumption of their Russian operations. This renewed interest underscores Russia's strategic importance as a market, especially amidst increasing tariff pressures from the US.
Sources indicate that LG Electronics is among the first to reconsider its position, having recently partially resumed operations at its home appliance factory in Moscow, which produces washing machines and refrigerators. An LG official explained, “The move is aimed at preventing deterioration of production facilities that have been idle,” according to the Korea Times.
Hyundai Motor Group, which with Kia ranked as the top two automotive brands in Russia in 2021, is also evaluating the potential re-entry into the Russian market. The group sold its St. Petersburg plant for a nominal fee of 10,000 rubles, with a buyback option valid for two years, meaning a decision on restarting production must be made before the end of 2025.
Earlier this week, Italian household equipment manufacturer Ariston announced its return to the Russian market after exiting in 2022.
This development appears to signal an emerging trend of comebacks and buybacks by prominent foreign brands amid shifting US relations with Russia.
Russian Prime Minister Mikhail Mishustin articulated on Wednesday that each company's situation would be assessed individually. He noted that foreign firms that left Russia “under government pressure” but retained “jobs, contacts, and technologies,” along with a buyback option, might be allowed to return. Mishustin also mentioned that companies with unique expertise would be welcomed, provided they comply with localization and investment requirements.
Ian Smith for TROIB News
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