95% of Western companies are in Russia

Originally published on Business Today

Austria’s Foreign Minister, Alexander Schallenberg, revealed that a significant number of Austrian companies are still operating in Russia, alongside approximately 95% of Western companies. Speaking at a joint press conference with US Secretary of State Antony Blinken in Vienna on March 15, Schallenberg emphasized the involvement of Austrian companies in the Russian and Ukrainian markets, with Austria being the sixth-largest investor in Ukraine.

Schallenberg affirmed that these Austrian companies strictly adhere to the “stringent and comprehensive” restrictions imposed by Western countries regarding Moscow’s special military campaign in Ukraine.

Caption: US Secretary of State Antony Blinken and Austrian Foreign Minister Alexander Schallenberg during a joint press conference in Vienna. (Image: AFP)

During the press conference, Schallenberg also announced Austria’s commitment to reducing its reliance on Russian gas, aiming to achieve “100% independence” from Russian gas by 2027. He highlighted the importance of Vienna and Washington standing together in the current conflict.

While many Western companies, including Apple, IKEA, Microsoft, IBM, Shell, McDonald’s, Volkswagen, Porsche, Toyota, and H&M, have announced their withdrawal from Russia following the European conflict in February 2022, several other foreign businesses have chosen to stay. Some have transferred ownership to Russian entities or rebranded themselves.

Last week, Politico reported that Washington exerted pressure on Raiffeisen Bank International, one of Austria’s largest banks, to withdraw from Russia. According to the source, Anna Morris, Assistant Secretary of the US Treasury, warned that the bank risked being excluded from the US financial system if it did not comply with the requirements.

Raiffeisen stated that they have significantly scaled down their operations in Russia since February 2022 but have not yet fully withdrawn from Moscow as nearly half of their profits in 2023 come from the country.

On the other hand, in October 2023, Moscow banned foreign companies from repatriating profits in response to Western sanctions. However, at that time, Kremlin Press Secretary Dmitry Peskov did not confirm this information, according to the Financial Times.

As Western companies continue to navigate the complexities of the Russian market, the situation remains dynamic and subject to further developments.

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