The number of legal entities with foreign participation in Russia has decreased by a third since 2021

The total number of legal entities during the same period also decreased by 5.32%, amounting to 3.19 million. The share of legal entities with foreign participation during the period under review fell from 0.87% to 0.6%.

The activity of new registrations of companies with foreign participation decreased in the three years: in 2021 – 839 companies, in 2022 – 396, in 2023 – 339.

Various trends in the work of both foreign and Russian companies have led to a significant reduction in the share of legal entities with foreign participation. The largest reduction (minus 4,224 companies between March 2021 and March 2022) was mainly due to the redomiciliation of some foreign companies from offshore companies.

The effect of the sanctions, according to the publication, was felt later: from March 2022 to March 2023, 3,039 companies with foreign participation disappeared from the registry, and during the past year another 2,673 legal entities were reduced.

The analysts also analyzed the decline by industry (they took into account the industries with the greatest number of foreign companies):

• oil and gas sector: the share of “foreigners” in production decreased from 9.4% to 8.7%,
• perforation: from 5.3% to 4.2%;
• coal mining: from 5.4% to 4.8%;
• investment company: from 6.5% to 4.8%;
• runners: from 4.4% to 4%;
• wagon manufacturers: from 8% to 7.3%.

At the same time, the participation of foreign companies in the production of medicines (from 5.2% to 5.7%), trucks (from 6.2% to 6.3%), spare parts (from 5.4%) increased to 5.6%) and finishing materials (from 4% to 5.1%).