Swiss economists from the University of St. Gallen published the results of a study that claims that less than 9% of companies from the EU and the Group of Seven (G7) left Russia in connection with the start of a special operation in Ukraine and the introduction of unprecedented economic sanctions against Moscow. It is reported by TASS.
The agency reports that Simon Evenett, a professor at the University of St. Gallen, and Niccolo Pisani, a professor at the International Institute for Management Development from Lausanne, concluded that the exit of companies from the EU and G7 countries from the Russian market “was very limited.” According to their research, at the time of the start of the special operation in Ukraine, there were 2,405 subsidiaries of 1,404 firms from the EU and G7 countries present in Russia. At the end of November 2022, “less than 9% of this pool of firms had abandoned at least one branch in Russia,” and this “abandonment rate hardly changed during the fourth quarter of 2022,” experts say.
The University of St. Gallen findings “challenge the narrative that there is a broad exodus of Western firms” from Russia.
“In fact, many companies headquartered in these countries (EU and G7 – Ed.) resisted pressure from governments, media and non-governmental organizations to leave Russia,” the economists said.
It is noted that the study of Swiss scientists “calls into question the desire of Western firms to leave the economies that their governments consider geopolitical rivals.”
“Extensive data demonstrates that a large number of companies headquartered in the European Union and the G7 continue to operate and invest in Russia,” concludes.
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