Amid speculation that some Western companies are considering a return to Russia following recent U.S. diplomatic outreach, Russian officials, including President Vladimir Putin, have made it clear that any re-entry will come with stringent conditions.
Speaking at the annual congress of the Russian Union of Industrialists and Entrepreneurs on Tuesday, Putin warned that foreign businesses would not be allowed to repurchase their former Russian assets at the discounted prices they had sold them for. Additionally, they would not receive preferential treatment upon their return.
“Each deal will require separate, careful consideration,” Putin stated, emphasizing the need for a regulatory framework that would facilitate foreign businesses’ return while maintaining an advantage for domestic manufacturers.
Following Russia’s full-scale invasion of Ukraine, hundreds of Western companies either exited the Russian market or significantly reduced operations. However, the first direct U.S.-Russia talks since the invasion—held in Saudi Arabia last month—coincided with a surge in Russian media reports claiming that some Western firms were eager to re-enter the market as geopolitical tensions potentially ease.
New Rules for Foreign Businesses
Putin has tasked the Russian government with drafting “transparent” regulations for returning Western firms, ensuring their operations align with “honest and responsible conduct” in Russia. The Russian Union of Industrialists and Entrepreneurs confirmed that the new regulations will be finalized by April.
Kirill Dmitriev, Putin’s special envoy for international economic and investment cooperation, stated that U.S. companies looking to re-enter Russia would be required to form joint ventures with Russian firms that have since taken over their market share.
Additionally, First Deputy Prime Minister Denis Manturov underscored that Russian stakeholders must retain control over these ventures, including the technologies involved.
“The principles of foreign investment and localization must change,” Manturov said, reinforcing Russia’s stance that any Western return must benefit domestic industries first.
