Biden Administration has failed! Less than 10% of foreign firms ha…

In a huge failure of the Biden Administration, Less than 10% of foreign firms have left Russia despite sanctions following the invasion of Ukraine. Several US & European firms continue to do business in Russia

Key Takeaways
. Despite Western sanctions, 2400 international firms continue to do business in Russia
. Several US and European companies have refused to exit the country
. Indian and Chinese investments keep growing in the Russian economy

YEREVAN (CoinChapter.com) — Despite the heavy Western sanctions on the Kremlin following Russia’s invasion of Ukraine, less than 10% of foreign firms have left the country, a recent survey has shown. The results are a stark display of the Biden Administration’s failure in crippling Russia’s economy.

The Kyiv School of Economics (KSE) recently surveyed as part of its ‘Leave Russia Project‘. Out of the 3,157 foreign companies, only 213 firms have adhered to the sanctions and left the country, amounting to just 6.7%. Moreover, around 473 companies are still in the process of leaving the country.

However, over 2400 companies continue to do business in Russia. Out of this number, 335 companies are scaling back or reducing investments, while another 723 companies have temporarily paused operations with the option to restart again. 171 companies have only announced to hold off on expansion plans but have refused to exit the country.

Recent survey by the Kyiv School of Economics (KSE) shows that the Biden Administration has failed to enforce sanctions on several companies doing business in Russia. — *Recent survey by the Kyiv School of Economics (KSE) shows that the Biden Administration has failed to enforce sanctions. Less than 10% of foreign firms have left Russia.* (*Data Credit: Leave Russia Project*)

Firms that have refused to exit the country include giants such as KIA, Nestle, Loreal, Procter & Gamble, and Amazon.

US and European Firms continue to reap profits from Russia

The United States and its European allies have led the efforts to curtail Russia’s economic growth since its invasion of Ukraine last year. However, many firms from those countries continue to do business in Russia.

While 49% of the 719 US firms have decided to leave Russia, only 42 (6%) have exited. As many as 161 firms (or 22% of the total) continue operations. Another 146 companies are in waiting mode.

Of the 319 German firms, a whopping 207, or 55%, have decided to stay. While 55 companies are still waiting to take a final call, only 21 have exited, or just 6% of the total German companies operating in Russia.

Several other European countries also have a large number of companies in Russia. 39 of the 62 companies from Austria continue operations, while 62 of the 106 Italian firms are still doing business there. This amounts to 63% and 68% respectively.

The scenario is similar across the board. 56% of Hungarian firms, 47% of French firms, and 60% of Greek firms continue to stay and do business.

Indian and Chinese companies refuse to exit Russia

Companies from non-Western economies also have large amounts of investments in Russia. 45 Indian firms continue to operate in Russia, representing 80% of the total number of 56. Meanwhile, with 8 firms still waiting for a final decision, only 4% of the companies coming from India have exited the Russian market.

Out of the 147 Chinese firms operating in the country, only 1 has exited while 12 are still awaiting a decision. Around 117 of these or 80%, have resolutely opted to stay back and continue doing business in Russia.

Of the 169 Japanese firms, 83 have stayed back, amounting to 49%. Moreover, 77% of the 22 firms from the United Aram Emirates (UAE) continue doing operations in the sanctions-hit country.

Those Western companies that left Russia are seeing Asian firms take their place. While Chinese firms have rushed to fill up the gap, others are also pumping money into Russia’s economy.

According to Russia Today, as many as 10 Indian companies plan to invest $135 million in Russian projects. Out of this, $98 million will go to the Moscow region alone.

Indian Firms to invest millions into the Russian economy despite sanctions on Russa — *Indian Firms to invest millions into the Russian economy*

The trend comes as no surprise. Russia-India bilateral trade hit a record $39.8 billion in 2022-2023. Following Moscow’s invasion of Ukraine, trade between China and Russia also hit a record high, reaching $190.27 billion. According to official data from Beijing, exports and imports from Russia in 2022 accounted for as much as 3% of the country’s total trade.

With international firms refusing to exit from the country, the US Government under President Joe Biden has failed to curtail Russia’s economic growth.