For Western firms, the risk of leaving Russia could be higher than staying
CNBC Key Points
- Despite heavy reputational and financial damage, the prospect of some Western companies leaving Russia is becoming harder with time.
- Among the firms still operating in Russia are Unilever, Nestle, Philip Morris, UniCredit, Raiffeisen and PepsiCo.
- Research suggests that some 500 Western firms remain in the country.
The River Moskva in Moscow, Russia.
Bloomberg | Bloomberg | Getty Images
A wave of Western companies exited Russia promptly after Moscow's invasion of Ukraine. But those who didn't are now struggling to leave.
For firms wishing to quit, amid heavy reputational and financial damage, the prospect of leaving is becoming harder with time. Nabi Abdullaev, a partner at Control Risks and former editor of the Moscow Times, told CNBC: "Some companies decide to stay because the risk of leaving Russia, at this moment at least, is higher than the risk of staying."
This is because the Russian government is constantly changing the rules for multi-national companies wishing to leave the country, making the process especially drawn out. Companies who go for a cut-and-run approach jeopardize their assets being taken by the state and "risk criminal prosecution of Russian staff," Abdullaev said, speaking to CNBC last month.
