University of St. Gallen and International Institute for Management Development. Photo supplied
What sanctions?
After the start of the war in Ukraine, a huge number of Western companies announced plans to exit Russia. But despite talk of a "vast exodus", many Western firms are still operating in Russia, Swiss researchers found.
Published: January 22, 2023, 7:58 am
St Gallen
A large number of companies headquartered in the European Union and G7 nations have not yet left Russia, according to research from Switzerland’s University of St. Gallen and International Institute for Management Development.
The study by Simon Evenett and Niccolò Pisani showed “a very limited retreat of EU and G7 firms”. This goes against the mainstream narrative of a “vast exodus” of Western firms abandoning the Russian market due to sanctions imposed by the EU. “In effect, many firms headquartered in these nations have resisted pressures from governments, the media, and NGOs to leave Russia since the invasion of Ukraine,” the research institution said in a statement.
At the start of the military operation on February 24, 2022, a total of 2 405 subsidiaries owned by 1 404 EU and G7 companies were active in Russia, according to the researchers. In late November 2022, they found that less than 9 percent of companies had divested at least one subsidiary in Russia and these divestment rates changed very little during the fourth quarter of 2022.
Instead companies headquartered in the US were more prone to divest than by those based in the EU or Japan. However, the results imply that fewer than 18 percent of American subsidiaries operating in Russia have followed sanction dictates. Among Japanese firms, 15 percent have left Russia, while among EU firms, it is 8,3 percent.
“These findings call into question the willingness of Western firms to decouple from economies their governments now deem to be geopolitical rivals,” they said in a statement. “The study’s findings are a reality check on the narrative that national security concerns and geopolitics is leading to a fundamental unwinding of globalisation.”
Thus Swiss food giant Nestlé, Microsoft and Ford Motors have all found ways to continue their operations.
All rights reserved. You have permission to quote freely from the articles provided that the source (www.freewestmedia.com) is given. Photos may not be used without our consent.
Consider donating to support our work
Help us to produce more articles like this. FreeWestMedia is depending on donations from our readers to keep going. With your help, we expose the mainstream fake news agenda.
Keep your language polite. Readers from many different countries visit and contribute to Free West Media and we must therefore obey the rules in, for example, Germany. Illegal content will be deleted.
If you have been approved to post comments without preview from FWM, you are responsible for violations of any law. This means that FWM may be forced to cooperate with authorities in a possible crime investigation.
If your comments are subject to preview by FWM, please be patient. We continually review comments but depending on the time of day it can take up to several hours before your comment is reviewed.
We reserve the right to delete comments that are offensive, contain slander or foul language, or are irrelevant to the discussion.
Europe
Firewall Imposed by Mainstream German Parties Against AfD Crumbles
The German opposition party, the AfD, made history on Sunday: for the first time, it achieved almost 44 percent of the vote in the Saxony-Anhalt state election, becoming by far the strongest political party; it narrowly missed an absolute majority.
Climate Propaganda Tanks: Two-thirds Are Disbelievers
The climate change narrative is losing its grip in Germany, once home of the most ardent believers.
Berlin Ditches German Opera for Afrofuturism
The Deutsche Oper in Berlin may still bear that name – but opera is a thing of the past.
With Nordenskiöld Through the Northeast Passage
In April, 1880, Stockholm's streets were filled with people cheering when a three-masted ship sailed into the harbour.
Will Coalition of Ukraine Supporters Crumble without Macron?
ParisMore than four and a half years after the outbreak of war in Ukraine, the coalition of the "willing" is showing cracks.
Norwegian Police: Do Not Share Burglar Footage Without Criminals’ Consent
In a controversial advisory that has sparked widespread public frustration, Norwegian police have urged residents not to share video recordings from their private security cameras that capture burglaries in progress.
Italian Politics Sees Rise of New Right-Wing Force and Shifting Alliances
Italian politics is witnessing rapid realignments, with a new right-wing party gaining momentum in just a few months and pro-Russia sentiments appearing to strengthen on both ends of the political spectrum.
Czech Republic’s First Afro Politician Released Early After Rape Convictions ‘Changes’ Him
With his Afro hairstyle and anti-racist message, Dominik Feri was predicted to become a political star who would shape the future of both the Czech Republic and Europe.
Zelensky and Budanov’s New Population Exchange Plan: Solve Ukraine’s Demographic Collapse with Migrants
Indians, Pakistanis and Africans are to replace the hundreds of thousands of Ukrainian men who have died at the front. In Kiev, liberalization is now being prepared to solve the labor crisis through immigration of a Western European nature – although corruption and the reluctance of migrants to stay in the war-torn country are still slowing down the population exchange.
No comments.
By submitting a comment you grant Free West Media a perpetual license to reproduce your words and name/web site in attribution. Inappropriate and irrelevant comments will be removed at an admin’s discretion. Your email is used for verification purposes only, it will never be shared.