The Estimation of Withdrawing and Withdrawn Foreign Companies Contribution in Industries and Regions of Russia

Abstract

Despite the current relevance of foreign companies’ withdrawal from Russia, there are no significant scientific works on this topic. Some researchers have attempted to assess the scope of foreign companies’ withdrawal from Russia. But similar works on a regional level are almost absent. The article attempts to estimate the shares of foreign companies that announced their withdrawal, suspension of activities, reduction of operations, suspension of investments, as well as those that objectively withdraw and reduced the activities in industries and regions of Russia. Analysis showed that foreign companies that announced their withdrawal accounted for 0.8% of the employees and 2.3% of the revenue of all organizations in the Russian economy, while foreign companies that objectively withdraw accounted for 0.6% and 1.8%. Among the industries, the automotive industry is the most affected. Among the regions, the largest diversified (city of Moscow, Moscow region, city of St. Petersburg), industrial diversified (Republic of Tatarstan, Tula region), automotive (Kaluga, Leningrad and Samara regions), timber processing (Republics of Komi and Karelia, Novgorod region), Sakhalin region are more affected. The most critical situation in terms of risks for the labor market and regional economies is developing in the automotive and timber processing regions.