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Are Western Companies really Serious About Withdraw From Russia?
[MoscowTimes] Are Western Brands as Serious About Withdrawing From Russia as They Appear?Last week, Mercedes-Benz became the latest Western company to announce that it had sold off its assets in Russia — including its factory outside Moscow — as the repercussions of the war in Ukraine continue to be felt by international brands unable to operate easily in the country due to economic sanctions and global public opinion. Mercedes is the third automotive giant with a factory in Russia to leave the country since February, following the exit of car giants Renault and Nissan, which between them estimated their total losses in Russia at a staggering $3 billion. Both companies sold their Russian assets for symbolic sums and cut their losses, with Renault's entire Russian infrastructure earning the company just two rubles, and Nissan earning one solitary euro for its plant. An unusual clause in their exit deals allows both Renault and Nissan to buy back their Russian assets within the next six years, however, obliging them to compensate the interim owner only for any investment made since 2022. Curiously, Nissan is continuing to pay its Russian staff for the next year, despite there being no legal obligation to do so. These facts suggest that the apparent exit of both companies from Russia is reluctant and largely symbolic, with both optimistic that sanctions will be lifted at some point in the next few years, allowing them to seamlessly re-enter the Russian market. Nissan appears to be even more optimistic than Renault, hanging on to its staff for a whole year to avoid having to start recruitment from scratch when it returns. Creative solutions designed to allow major brands to re-establish their presence in Russia after a short interregnum are not limited to the auto industry, either. Fashion retailer Zara has come up with a very simple solution, announcing in March that it was shuttering its stores in Russia, but then reopening them in October under the name of its Lebanese franchisee, the Daher group. Posted by: Dron66046 2022-11-03 |
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