“Market has not disappeared”
Moscow expects retail chains to return
03/14/2022 1:21 p.m
Many shops in Russia have been closing since the attack on Ukraine. The government sees the problem in logistics, not in politics. Meanwhile, the British government is calling on the country’s companies to withdraw from Russia in order to cause “the greatest possible economic damage” there.
The government in Moscow expects international retail chains to return quickly to the Russian market. Russia’s Economy Minister Maxim Reshetnikov said the closure of many foreign companies’ stores was linked to supply chain and logistics problems. “These are the problems that the Russian economy has to deal with, and foreign companies also have to deal with these problems.”
Since the Russian invasion of Ukraine, many companies have stopped doing business in Russia, whether in protest or because of the sanctions. These include international retail chains such as Ikea and the H&M Group, which have closed their branches for the time being.
The British government is now even explicitly urging the country’s companies to withdraw from Russia. Finance Minister Rishi Sunak called on British companies to “think carefully” about investing in Russia to support President Vladimir Putin’s “barbaric regime”. Rather, further measures are needed “in order to jointly cause the greatest possible economic damage” for Russia. Numerous British companies have already announced their withdrawal from Russia.
However, Reshetnikov said nothing about possible political reasons for companies to withdraw from Russia. He reported that at a meeting, company representatives had asked about the logistics, such as replacing European suppliers with Asian ones. In addition, the companies retained their Russian workforce. He therefore expects these companies to return once the supply chains have been reorganized. “Our market hasn’t disappeared, companies have been making good money here for quite a long time, business in our country has been profitable.”