**Russia Bans Foreign Companies That Left After Invasion**
In a move that could have significant implications for global businesses, Russia is planning to ban foreign companies that left the country after the invasion of Ukraine in 2022. According to reports from Russian state-controlled news agency RBC, companies that funded Ukraine’s army or were branded as “foreign agents” will not be allowed to return to the market.
This move comes amid a thawing of relations between Moscow and Washington as the new Trump administration seeks to broker a peace deal in Ukraine. However, despite this, Russia is taking steps to protect its economy from foreign interference.
**What Does This Mean for Foreign Companies?**
Companies that have been branded as “foreign agents” or have a “hostile position” towards Russia will be barred from returning to the market. This includes companies that funded Ukraine’s army, which has been seen as a major obstacle to peace talks between Moscow and Kiev. Additionally, companies that owe wages, taxes, and other mandatory payments to their employees before leaving Russia may also be banned.
But it gets worse for foreign firms. They will be required to localize production to a certain level, transfer technologies to Russia, and locate production facilities and engineering and scientific development centers in the country. This is a significant blow to companies that have been considering returning to the Russian market after the initial invasion.
**Why Is This Happening?**
The move to ban foreign companies comes amid tensions between Moscow and Washington over Ukraine. Despite reports of a thawing of relations, Russia remains committed to protecting its economy from external interference.
Russian President Vladimir Putin ordered authorities in February to prepare for the return of Western companies, emphasizing that Russian firms should have “certain advantages” over those re-entering the market. However, it seems that these plans have been scrapped in favor of a more isolationist approach.
**What’s Next?**
The final version of the document outlining the criteria for foreign companies to return has not yet been agreed upon. It remains to be seen how this will affect global businesses and their relations with Russia. One thing is certain, though: Russia is taking significant steps to protect its economy from external interference.
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