According to the Yale School of Management, 330 companies have left Russia or reduced their operations there since President Vladimir Putin launched an invasion of Ukraine on February 24. Following Russia’s attack on its pro-European neighbor, companies that have invested billions of dollars in the Russian market over the last three decades fled in droves.
The list includes technology behemoths such as Apple and Microsoft, as well as energy behemoths such as BP and Shell, as well as a slew of automakers and retail chains. Some have exited the market entirely, while others have announced a halt in sales and shipments. Companies that aren’t pull out stopped Russians from using their platforms including freelance sites.
Key takeaways
The closures resulted in tens of thousands of immediate job losses for local Russian employees and serve as a stark reminder of Russia’s international and economic isolation as a result of its actions in Ukraine.
The country is bracing for its worst economic crisis since the Soviet Union’s demise, and the Russian ruble has already lost up to half its value since Putin’s invasion. Russia’s attack was met with an unprecedented package of Western sanctions, which has made operating in Russia increasingly difficult. This has exacerbated a moral backlash among company executives, investors, and Western customers who are urging businesses to cut ties with the country.
Alongside with these sanctions, reversing decades of investment and pulling out billions of dollars from the Russian economy is enough to leave it weak, vulnerable, and isolated. Russia had responded by selling foreign currency in the foreign market, policies that helped the citizens pull through, and ordering national companies to see some forex.
The question
Is Russia capable of prosecuting this war for a long time? How long will they survive an economic isolation?