Leave Not Stay: Analysis of the Behavior of European Companies Under Sanctions on Russia

This study aims to assess the real scale of European companies leaving the Russian market after the start of the Special Military Operation and their interest in working in Russia. Expert assessments are based on original databases data of foreign companies’ behavior and their participation in Russi...

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Main Authors: Ekaterina Ya. Arapova, Svetlana I. Balakhonova
Format: Article
Language:English
Published: Russian Academy of Sciences, Institute of Europe 2025-02-01
Series:Современная Европа
Subjects:
Online Access:http://www.sov-europe.ru/images/pdf/2025/1-2025/Arapova-Balakhonova-1-25.pdf
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author Ekaterina Ya. Arapova
Svetlana I. Balakhonova
author_facet Ekaterina Ya. Arapova
Svetlana I. Balakhonova
author_sort Ekaterina Ya. Arapova
collection DOAJ
description This study aims to assess the real scale of European companies leaving the Russian market after the start of the Special Military Operation and their interest in working in Russia. Expert assessments are based on original databases data of foreign companies’ behavior and their participation in Russian industry exhibitions after February 24, 2022, compiled by authors based on the Center for Expertise on Sanctions Policy, MGIMO University. The study tries to more objectively assess European companies’ behavior in the Russian market amid an unprecedented corporate boycott, as well as to identify the factors determining the choice of certain behavior model, which is possible due to a more critical approach to analyzing the most speculative strategy “leave the market”. The research found that the leaders in the number of companies leaving Russia are the UK, Germany, Finland, Poland and Switzerland. The companies with the largest share of the Russian market in their income structure also left the Russian market most willingly, thus, European companies would better turn down commercial benefits to comply with sanctions than companies from other countries. At the same time, Italian, German and Spanish companies are least willing to leave trade, agricultural and food sectors. Therefore, the scale of the negative impact on the Russian economy appeared to be lower than analysis estimates of the list of companies.
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record_format Article
series Современная Европа
spelling doaj-art-6e42480a0a874eea84eeb55c63cd601e2025-08-20T02:19:30ZengRussian Academy of Sciences, Institute of EuropeСовременная Европа0201-70832025-02-011678110.31857/S0201708325010061Leave Not Stay: Analysis of the Behavior of European Companies Under Sanctions on RussiaEkaterina Ya. Arapova0Svetlana I. Balakhonova1MGIMO UniversityMGIMO UniversityThis study aims to assess the real scale of European companies leaving the Russian market after the start of the Special Military Operation and their interest in working in Russia. Expert assessments are based on original databases data of foreign companies’ behavior and their participation in Russian industry exhibitions after February 24, 2022, compiled by authors based on the Center for Expertise on Sanctions Policy, MGIMO University. The study tries to more objectively assess European companies’ behavior in the Russian market amid an unprecedented corporate boycott, as well as to identify the factors determining the choice of certain behavior model, which is possible due to a more critical approach to analyzing the most speculative strategy “leave the market”. The research found that the leaders in the number of companies leaving Russia are the UK, Germany, Finland, Poland and Switzerland. The companies with the largest share of the Russian market in their income structure also left the Russian market most willingly, thus, European companies would better turn down commercial benefits to comply with sanctions than companies from other countries. At the same time, Italian, German and Spanish companies are least willing to leave trade, agricultural and food sectors. Therefore, the scale of the negative impact on the Russian economy appeared to be lower than analysis estimates of the list of companies.http://www.sov-europe.ru/images/pdf/2025/1-2025/Arapova-Balakhonova-1-25.pdfinternational sanctionsrussiacorporate boycotteuropean companiesmarket withdrawalcommercial interest
spellingShingle Ekaterina Ya. Arapova
Svetlana I. Balakhonova
Leave Not Stay: Analysis of the Behavior of European Companies Under Sanctions on Russia
Современная Европа
international sanctions
russia
corporate boycott
european companies
market withdrawal
commercial interest
title Leave Not Stay: Analysis of the Behavior of European Companies Under Sanctions on Russia
title_full Leave Not Stay: Analysis of the Behavior of European Companies Under Sanctions on Russia
title_fullStr Leave Not Stay: Analysis of the Behavior of European Companies Under Sanctions on Russia
title_full_unstemmed Leave Not Stay: Analysis of the Behavior of European Companies Under Sanctions on Russia
title_short Leave Not Stay: Analysis of the Behavior of European Companies Under Sanctions on Russia
title_sort leave not stay analysis of the behavior of european companies under sanctions on russia
topic international sanctions
russia
corporate boycott
european companies
market withdrawal
commercial interest
url http://www.sov-europe.ru/images/pdf/2025/1-2025/Arapova-Balakhonova-1-25.pdf
work_keys_str_mv AT ekaterinayaarapova leavenotstayanalysisofthebehaviorofeuropeancompaniesundersanctionsonrussia
AT svetlanaibalakhonova leavenotstayanalysisofthebehaviorofeuropeancompaniesundersanctionsonrussia