In 2022, hundreds of companies from “unfriendly countries” remaining in Russia after the invasion of Ukraine, increased their profits by one and a half times, to 1.1 trillion rubles (11.36 billion euros), according to an investigation by the Russian Novaya Gazeta Europe.

The largest profit in the Russian market was provided by the French fuel company Total, which reached 296 billion rubles and doubled the profit of the previous year. Total still owns stakes in Russian gas projects. The French company says European sanctions and laws in Russia prevent it from finding a non-Russian buyer for its stake.

The most important increase in profits in Russia was received by the American company Mondelēz. Among other things, the company in question produces confectionery under the brands Milka, Alpen Gold, Oreo. In 2022, Mondelēz’s profits in Russia more than quadrupled. Almost the same growth was recorded by another American company PepsiCo.

The Austrian Raiffeisen Bank more than tripled its profit in Russia, reaching 141 billion rubles. The bank in question had a financial advantage after Russian banks were cut off from the SWIFT international system of interbank transactions in response to Russia’s invasion of Ukraine. In the Russian banking sector, only Sberbank recorded a profit.

Of the major tobacco companies, only the British Imperial Brands left Russia. But its competitors last year increased their net profit: Japan Tobacco by one and a half times, to 43 billion rubles, and British American Tobacco – by 81%, to 14 billion rubles. At the same time, the interest of Russians in European-made cigarettes has increased. Sales of cigarettes from Germany in the first quarter of 2023 doubled compared to the previous year.

According to experts, an increase in profits is not always associated with an increase in revenue, but may indicate a decrease in spending on productive investments and advertising.

It is becoming increasingly difficult for foreign companies to leave Russia. At the moment, they cannot sell their business or their stake without the approval of the Russian authorities. Among other things, they must provide the buyer with a 50% discount and pay a “voluntary contribution” to the Russian budget, up to 10% of the assessed value of the business. Under certain conditions, a foreign company selling its Russian business may not get anything from its sale.

The Ministry of Finance admitted that these conditions were deliberately tightened to make the withdrawal from Russia unprofitable.

“After almost a year and a half since the beginning of the war,” Novaya Gazeta Europe writes, “a small percentage of foreign companies have left the country. According to the Kyiv School of Economics, after the start of the war, only 7% of foreign companies (241 of them) completely left Russia. Another 10% of companies have suspended their activities, 41% continue to operate as before, and a third have either reduced part of their activities or stopped new investments. According to the Central Bank of Russia, from the beginning of the war until March of this year, 200 foreign investors sold their business.

Source: APE-MPE, Novaya Gazeta Europe.