The return of Donald Trump to the presidency of the United States has influenced the plans of Western companies that continue to operate in Russia, but were thinking of leaving the country. This was stated by lawyers, bankers, consultants and businessmen interviewed by Reuters.
Author:
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Companies still operating in Russia will monitor Trump’s measures and adjust their plans accordingly, they said. At the same time, it is still unclear what exactly the politician will be able to achieve during his second presidential term: Trump’s advisers previously told the agency that it could take months to resolve the situation in Ukraine.
Trump’s victory in the US election added “another layer of uncertainty for multinational companies with assets in Russia,” Ian Massey, head of corporate intelligence in the EMEA region at consultancy S-RM, told Reuters. “While the Kremlin continues to raise the cost of exiting the Russian market, Trump can reduce the cost of staying in it, creating a kind of stability,” he said.
The new US administration can ease sanctions against Russia if it achieves a resolution to the conflict in Ukraine, Alan Kartashkin, partner at the law firm Debevoise and Plimpton, told the agency. He explained that this could lead to the unfreezing of some assets owned by foreign companies trapped in Russia, starting a new wave of exit deals.
One M&A investor told Reuters that companies that do not want to leave Russia will adopt a wait-and-see strategy.
Another source, who has advised on more than 100 exit deals, added that Trump’s return to the presidency could force those planning to sever ties with Russia to remain in the country. Asked if Trump’s arrival could stop the departure of some companies or cause the return of others, the interlocutor responded that “that is beyond his understanding.”
After the start of the military operation in Ukraine, many Western companies left Russia, including the car manufacturer Renault, the fast food chain McDonald’s and the brewer Heineken. However, others decided to stay, such as PepsiCo and Procter & Gamble, citing humanitarian reasons.
In October, the Russian government tightened the conditions for the departure of foreigners, increasing the minimum discount for companies to sell their assets from 50% to 60%, and also increasing the “voluntary contribution” to the budget to 35%.
Author:
Bogdan Muzychenko
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
