The company of the West with Moscow often seems to be on ice. Sanctions are the dominant subject. But the restoration of the economic relationship plays an important role in the current contacts between the US and Russia.
Can the largest country in the world in the world take the return of Western companies into account after the end of the Ukraine war? There is a clear and clear yes from the Russian expert at the Vienna Institute for International Economic Comparative (Wiiw) Vasily Astrov. After all, the market with its nearly 150 million citizens is far too interesting to say goodbye in the long term, Astrov explains.
This is particularly the case for German car companies that had operated factories in Russia in 2022. “Half of all new cars from China are currently in Russia,” says the specialist. In addition to German brands such as VW, Mercedes-Benz and BMW, manufacturers from France, Japan and South Korea also had considerable market shares.
Many companies have stayed in Russia
The number of companies that Russia would have left because of the war and sanctions is usually overestimated. Only twelve percent of foreign companies that work in Russia before the Ukraine war would have left the country completely. This is especially true for some large companies. “The companies on medium -sized size have remained more of it, but do little to take it away,” said Astrov.
It must be kept in mind that Russia soon made farewell of foreign companies more difficult and that since the autumn 2024 has introduced further high obstacles since the fall 2024. The conditions in the Moscow side are now also indicated for each return.
The economist sees the economic outlook of Russia, which has so far been able to limit the damage of Western sanctions. “The global Green Energy transition is of course bad news for Russia,” says the specialist in view of the great dependence on the country of income from oil and gas output.
Specialists miss in Russia
The mass emigration of particularly qualified specialists from the IT area is also a mortgage. Of the estimated one million experts who had left the country for fear of repression and convocation to the army, part has now returned. “But hundreds of thousands are still missing”.
An industrial policy – such as the promotion of certain industries – has not been successful for decades. Consumption is an important economic boost. Wages rose by nine percent in 2024. Russia, the fourth largest economy in the world, can only grow through the internal market, says Astrov.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
