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Putin is preparing for the return of Western companies to Russia amid improving relations with the United States: which brands may return

on March 21, Russian President Vladimir Putin instructed his government to prepare for the resumption of Western companies’ presence on the Russian market amid improved relations with the United States. Putin expressed his intention to provide Russian companies with “certain advantages” compared to companies returning to Russia as a response to the sanctions imposed by Western countries.

Russian Foreign Minister Sergei Lavrov also emphasized that Russia should only allow Western companies to enter industries that do not pose a threat to the economy in case “someone makes a mistake again.”

This was reported by the Financial Times.

According to the newspaper, this indicates the seriousness of Russia’s intentions to return Western companies.

In particular, Kirill Dmitriev, chief investment manager of the Russian government, during meetings with representatives of the Trump administration, presented a document that calculated the losses of American companies due to their withdrawal from Russia after the start of the full-scale invasion of Ukraine.

“Losses of American companies by industry,” read the document, which Dmitriev showed to a journalist from The New York Times.

One of the columns contained a figure: “Total losses – 324 billion dollars.” Dmitriev expressed hope that some of these companies would return to the Russian market this year.

According to the KSE Institute, American companies had only $52 billion worth of assets in Russia, and those that left the Russian market earned only $36 billion between 2021 and 2023.

According to Financial Times sources, several American companies have expressed interest in resuming their business in Russia, but none of them has taken concrete steps to do so.

Also,after meetings with US representatives , Dmitriev said that he expects a number of American companies to resume operations in Russia in the second quarter of 2025.

How Russia will return Western brands: conditions and methods

On Wednesday, March 26, Russian Prime Minister Mikhail Mishustin said that Russia would be guided only by its national interests when returning Western brands. All decisions on the return of Western businesses will be made individually by a special commission. First of all, the return to Russia of those brands that “behaved responsibly” will be considered.

What are the economic grounds for the return of Western brands to Russia and why did Putin talk about it? [Kommersant] analyzed in detail.

Will western business return to russia?

Since the beginning of the full-scale invasion, according to the Kyiv School of Economics, 472 foreign companies have left the Russian market, and another 1,360 have reduced their presence in Russia. Some companies sold their assets, while others abandoned them altogether. When it became clear that Western businesses had no intention of returning, Putin began to make threats.

“Putin said that companies that had left Russia under pressure from the domestic political situation and sold their assets at low prices should not be able to buy them back for the same low price. He also warned Russian business that Western sanctions against Russian citizens and companies… are not temporary and even if they are eased, new obstacles to doing business will arise,” Reuters said.

Rumors about the alleged massive return of Western businesses to Russia, which are being spread by Russian officials against the backdrop of contacts between the United States and Russia, have not been confirmed. The Kremlin has not received any requests, said the deputy head of the Russian Security Council.

“Medvedev emphasized that Russia did not expel foreign companies – they left ‘under pressure from their governments’… So if they never return, it will not be a problem. And those who do decide to return should understand that it will not be so easy – they will have a “separate conversation,” he said, according to The Moscow Times’ publication on Telegram.

In February 2025, Russian propagandists began actively spreading rumors about the imminent return of Western companies and brands to Russia. Journalists from The Bell contacted representatives of Western companies, which, according to the Kyiv School of Economics, were the largest in terms of sales among those who left the Russian market after Russia’s full-scale invasion of Ukraine. Twenty-one companies responded to their request, including leading automotive and electronics manufacturers, as well as oilfield service and chemical companies. Not a single positive response was received. All of them said they had no plans to return to Russia.

“Given the current geopolitical situation, there is no room for planning anything related to Russia. At this stage, any discussions on this topic would be purely speculative and a waste of time,” the electronics distributor said in a statement to The Bell.

The return of Western brands to Russia: economic and political aspects

Economist Oleg Pendzin, in an exclusive commentary for Komersant ukrainskyi, spoke about possible reasons why Russia has started talking about the return of Western brands to its market. According to him, statements by Russian officials about the return of companies are more likely to reflect political games than real economic reasons.

Penzin believes that the return of brands is more of a political maneuver than a real economic need. He points to the complicated geopolitical situation and sanctions pressure, in particular, that a reduction in US sanctions pressure could lead to a split in sanctions policy against Russia.

“Any concessions from America may encourage the European Union countries to look for opportunities to return to the Russian market,” the economist explained.

Problems with the luxury segment and Chinese substitutes

One of the biggest demands in the Russian market is the premium luxury segment, especially in the fashion and automotive industries.

“After the luxury brands left Russia, their place was not taken by others. China does not have its own luxury brands, it only sells European ones under licenses,” Pengjin said.

However, the economist is confident that these brands will not return, even if sanctions are eased. The problem is that the decision to withdraw was due not only to economic factors, but also to the political situation in Europe. According to him, EU countries may begin to gradually ease sanctions or look for opportunities to return to the Russian market.

“The United States may allow the return of companies such as ExxonMobil, which had significant assets in Russia in the oil industry,” he added.

The economist emphasizes that the sanctions policy between Europe and the United States has already begun to diverge. European countries, unlike the US, are not easing sanctions, which makes it more difficult for brands to return. According to Pendzin, a certain number of brands will not return to Russia, including those that left under tremendous pressure or those that have internal policies that do not allow them to return due to the political situation.

Global politics in an era of division

Penzin believes that global politics and sanctions between the US and Europe continue to divide, and this could have serious implications for the future of sanctions policy.

“We live in an increasingly polarized world, and the situation with Russia only reinforces this trend. That is why the issue of returning brands has not only economic but also deep political implications,” he summarized.

Which Western companies have left Russia after February 24, 2022

In the three years since the beginning of Russia’s full-scale war against Ukraine, 62% of companies from “unfriendly” countries have left Russia. These data are provided by the audit and consulting agency Kept.

According to the information, more than 300 foreign companies that had significant assets in Russia and revenues of at least 1 billion rubles were included in the analysts’ sample. Of these, 183 companies completed their exit from the Russian market by the end of 2024. Most of them sold their assets to Russian enterprises (103 cases) or local management (40 cases). In 17 cases, foreign companies withdrew from joint ventures, and 14 companies ceased or suspended their operations in Russia. Nine deals were concluded with foreign buyers.

According to Kept data, the largest share of exit decisions was made by companies from Northern Europe – 94%, with 45 transactions. For example, all 20 Finnish companies in the sample left Russia, and 13 out of 15 Swedish companies also exited, with two deals not yet finalized. In Norway and Iceland, the share of exits is 100%, and Denmark showed 74%.

Companies from the United States, Germany, France and the United Kingdom left Russia in the range of 59-67% of cases, and the highest exit rates were among companies from Canada, Australia and New Zealand – 100%.

The fewest companies that left Russia were Austrian (50%), Swiss (38%), Italian (22%), and Belgian companies. For another 96 companies, about one-third of the Kept sample, there was no information about their exit, and they are likely to continue their operations in Russia.

According to Kept, another 19 companies are in the process of exiting the Russian market, and seven foreign assets have been transferred to Russian management. These companies include a joint venture between the breweries AB InBev (USA, Belgium) and Efes (Turkey), as well as Russian businesses such as home appliance manufacturer Ariston (Italy) and agricultural company Agroterra of NCH Capital (USA).

According to Kept’s estimates, the share of companies that left the Russian market increased from 55% in 2023 to 62% in 2024. At the same time, the share of companies that decided to leave increased from 64% to 68.5%.

6% of companies are still in the process of selling their businesses.

Since the beginning of Russia’s full-scale invasion of Ukraine on February 24, 2022, some Western companies and brands have ceased their operations in the Russian market:

1. McDonald’s – the company sold its business in Russia, and a new brand called “Delicious and Period” started operating in its place.
2. Starbucks – the brand closed all its coffee shops in Russia and stopped selling products in the country.
3. IKEA – the company has suspended its operations in Russia, including stopping the sale of goods and closing stores.
4. Coca-Cola – stopped production and sale of beverages in Russia, although local products could be produced by other companies.
5. PepsiCo – the company stopped selling beverages and some products in Russia, but continued to operate in other food segments.
6. Apple – the company stopped selling its products in Russia, limiting access to its services and updates.
7. Nike – the company suspended sales and closed its stores in Russia, although online sales remained limited.
8. H&M – the company suspended its operations in the Russian market, halting sales and closing stores.
9. Adidas – stopped sales and closed stores in Russia.
10. Volkswagen – stopped production and sales of cars in Russia.
11. Renault – the company sold its plant in Russia and stopped selling cars.
12. ExxonMobil – withdrew from projects in Russia, ceasing its operations in the country.
13. Shell – announced its withdrawal from the Russian market and the sale of its assets.
14. BP – sold its stake in the Russian oil and gas project Rosneft.
15. Microsoft – stopped selling its products and services in Russia.
16. Sony – stopped selling its products in Russia.
17. Dell – stopped supplying its equipment to Russia.
18. L’Oreal – suspended sales of its products in Russia.
19. Danone – stopped part of its production and sales in Russia.
20. Unilever – announced the termination of its business in Russia, including the sale of certain products.

These are just a few of the large Western companies that have ceased operations in Russia since the start of the war. Many of them explained their decision by political and economic reasons related to Russia’s invasion of Ukraine and international sanctions.

Which western brands have remained in Russia since the start of the full-scale invasion

Despite Russia’s full-scale invasion of Ukraine on February 24, 2022, some Western companies and brands have decided to maintain their presence in the Russian market:

1. Nestlé – has maintained its operations in Russia, including continuing to supply food and beverages, although it has announced the suspension of new investments and the sale of some brands.
2. PepsiCo – although the company has suspended the sale of some products, it continues to operate in the Russian market in the food segment (e.g., chips, juices and other products).
3. Citi – although it has reduced some of its operations in Russia, it has retained its financial services for certain clients, in particular for corporate clients.
4. Tata Group (Jaguar Land Rover brands) – despite the war, the company continues to supply and sell cars in Russia.
5. BASF – the German chemical company maintains part of its operations in Russia, although it has limited its investments in the country.
6. Lukoil – although it is a Russian company, several Western investors continue to support its activities internationally.
7. Microsoft – although it has stopped selling new products, it continues to support some of its services, such as enterprise software.
8. TotalEnergies – the French energy company continues some of its activities in Russia, particularly in the oil sector, although it has reduced its activity.
9. Schneider Electric – the company continues to operate in Russia, although it has announced a reduction in investment and is trying to limit its presence in the country.
10. Yum! Brands (KFC, Pizza Hut ) – although Pizza Hut has already left Russia, KFC continues to operate despite criticism.

This list is not exhaustive, as some companies have decided to keep part of their operations in Russia, even in the face of international sanctions and political pressure. It is worth noting that some of them continue to operate in the form of a minimal presence or through local partners.

Thus, despite statements about the possible return of Western brands, the reality is more skeptical. Many Western companies that left Russia after the war started are unlikely to return, even if sanctions are eased.

The geopolitical situation, in particular the policies of the United States and Europe, may leave Russia isolated from Western companies for a long time. This means that the economic presence of Western brands in the Russian market is unlikely to recover in the near future.