The exodus of Western manufacturing corporations from Russia–the beginning

Abstract

ABSTRACT This study aims to depict the dramatic exit of Western multinational corporations (MNCs) from Russia after the escalation of the Russia – Ukraine conflict and the beginning of military action between the two countries. The beginning of intensive military actions between Russia and Ukraine served as a pretext for strengthening Western sanctions that now not only include sanctions against Russian physical and legal persons but also the ban on trade with Russia, the ban on financial transactions, and strict control of value appropriation by foreign corporate centres of Western MNCs in Russia. We demonstrate how Western corporations selected candidates for divestment under pressure from their home countries and the strengthening demands of the Russian government towards both sides of the deal with foreign industrial assets. Moreover, the present study refutes several popular postulates on foreign divestment and indicates several promising directions for future studies.