Putin Orders Procedure for Coordinating Return of Foreign Companies to Russia with Strict Conditions

Russian President Vladimir Putin has instructed the government to develop a procedure for coordinating the return of foreign companies that previously left the country, making it clear that any re-entry into the market will come with strict conditions.

Addressing the annual congress of the Russian Union of Industrialists and Entrepreneurs in Moscow on Tuesday, Putin expressed the country’s interest in welcoming back some foreign companies that exited Russia due to the ongoing war in Ukraine. However, he emphasized that returning businesses should not expect an easy comeback.

Western companies that sold their Russian subsidiaries at significantly reduced prices should not be allowed to reclaim their assets cheaply under buyback agreements, Putin stressed.

“Market conditions have shifted: companies have strengthened, increased their capitalization, and now command entirely different valuations,” Putin said. “Consequently, each such transaction will evidently require individual, thorough consideration.”

The Russian government has been tasked with preparing a list of foreign businesses that “stopped working in Russia and developing a procedure for coordinating their return with mandatory guarantees of good faith and conscientious business practices in our country,” he added. He also underlined the importance of keeping this process transparent.

At the same time, President Putin reaffirmed that local businesses will remain the state’s top priority.

“Now certain departed companies are indeed contemplating a return… However, our enterprises that have assumed their positions are at various stages of the investment cycle,” he said. “Some have already made capital investments and established production, while others are only commencing projects and initiating construction despite the high interest rate. Naturally, we have no right to undermine these plans or nullify the efforts and funds invested,” he explained. “The interests of Russian companies, enterprises, and their employees will always remain a priority. It is from this standpoint that we will approach the question of overseas businesses returning to our market.”

Vladimir Putin also acknowledged that Russian businesses have benefited from the departure of Western companies, stepping into vacant spaces, creating jobs, and focusing on technological advancements.

According to data compiled by the Kyiv School of Economics Institute, more than 472 foreign companies have completely withdrawn from Russia, while 1,360 have scaled back their investments following Moscow’s military actions in Ukraine. The exodus was largely driven by Western sanctions, particularly those imposed by the United States.

However, the geopolitical landscape is shifting. Since the inauguration of US President Donald Trump earlier this year, relations between the Kremlin and the White House have warmed significantly. In recent weeks, Donald Trump, Vladimir Putin, Ukrainian President Volodymyr Zelensky, and other global leaders have engaged in discussions about a potential resolution to the war.

This has sparked investor optimism about the possible return of international companies. However, top Russian authorities remain skeptical about foreign businesses resuming operations in the country, even if sanctions are lifted and peace talks succeed.