Regulating the Return: Putin Advocates for Framework to Welcome Western Companies Back to Russia

Russia requires a regulatory framework for Western firms looking to re-enter the market in order to ensure that domestic companies maintain their competitive advantages, President Vladimir Putin stated on Friday.

“We can appropriately facilitate the return of those aiming to re-enter our market by providing benefits to our local producers,” Putin remarked during a technology forum.

Following the full-scale invasion of Ukraine in February 2022, hundreds of Western businesses either withdrew or scaled back their operations in Russia.

This week, negotiators for Putin mentioned discussions about restoring “mutually beneficial economic cooperation,” particularly in energy projects in the Arctic with U.S. representatives in Saudi Arabia.

The first direct discussions between U.S. and Russian officials in three years were also reported alongside numerous claims in Russian media that Western businesses were eager to come back as hopes for eased geopolitical tensions grow.

“I urge the government to consider how we can manage the interactions between our enterprises and those of our rivals,” Putin stated, referring to the proposed regulations as “delicate and cautious, yet essential.”

The Russian president reiterated his belief that Western sanctions have had a “stimulating effect” on domestic production.

On Thursday, First Deputy Prime Minister Denis Manturov indicated that Russia would evaluate companies wishing to return on an individual basis.

On Friday, Manturov noted that no Western companies that had left and had options for buybacks have taken advantage of them thus far.

Since the widespread departure of Western companies, Russia has imposed increasing discounts on sales and exit fees for those leaving, as the remaining Western enterprises face scrutiny for their role in supporting Russia’s war economy.