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In 2023, the leading foreign company by revenue in Russia was Chery Automobile, a Chinese automotive manufacturer, having earned over *** billion Russian rubles. Japan Tobacco International (JT Group) ranked second with a revenue of *** billion Russian rubles. Following the Russian invasion of Ukraine, hundreds of Western companies exited the Russian market in 2022.

What attracts foreign companies to Russia?

With a population of over *** million people, Russia has the ninth-largest consumer base in the world. Furthermore, the country ranks 11th by nominal gross domestic product (GDP) globally. Russia’s membership in the World Trade Organization (WTO) reduces trade barriers and eases trade for foreign and domestic business alike. Moreover, its special economic zones, of which there are currently **, simplify the migration regime and offer tax preferences for organizations willing to do business in the region. Among the founding BRICS countries, Russia offers the lowest corporate tax rate of ** percent, compared to ** percent in China and ** percent in Brazil.

Exodus of foreign companies from Russia

In response to the war in Ukraine that started in ***, foreign companies began limiting their business ventures or completely exiting the Russian market. In fact, all ** of the most valuable brands worldwide have withdrawn, suspended, or scaled back their sales, shipments, or operations in the region. The exodus of international companies had a negative impact on employment in the country, whereas foreign brands were estimated to suffer profit losses. As of November 2022, the British energy company BP reported the highest loss of ** billion U.S. dollars following its withdrawal from Russia.