In September 2024, only three international companies completed their withdrawal from the Russian market by either selling or liquidating their operations, according to monitoring by the Kyiv School of Economics (KSE). Currently, over 2,000 firms are still operating in the market, with only 428 having completed a full exit.
The most recent cases of completed exits involve the Finnish energy and environmental technology company Oilon, the German facilities manager Apleona, and the US manufacturer of fiber lasers, IPG Photonics Corp.
Oilon decided to discontinue its business operations in Russia as a result of Russia’s full-scale invasion of Ukraine and ceased all operational activities in November 2022. The company’s Russian legal entity was liquidated on September 4, 2024. The accompanying statement mentioned the write-off of one-time costs associated with the termination of the group’s operations in Russia.
Apleona received revenues in Russia following the country’s full-scale invasion of Ukraine. In September 2024, without any formal announcement, the entry regarding the founder of Apleona GmbH was removed from Russia’s Unified State Register of Legal Entities. Delaware Investment Company Limited Liability Partnership (Egypt) is now the new founder of the organization.
Fiber laser giant IPG had been winding down operations near Moscow since shortly after the invasion of Ukraine. On September 3, IPG Photonics said that it has now sold its Russian subsidiary, known as IRE-Polus. “The sale marks the finalization of IPG’s exit from all facilities in Russia, following imposed sanctions on trade after the start of the war with Ukraine,” stated the firm.
According to estimates from the KSE, foreign companies operating in Russia could have contributed $20 billion in tax revenue annually to Russia’s fully militarized economy during the 2022-2023 period.
Those remaining not only provide a financial lifeline to the Kremlin but are also obliged to assist the Russian state with the mobilization of eligible employees and the provision of material support deemed crucial for its war effort.