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Loss of Western brands is Russia’s gain – Putin

Russian economy news

The businesses they leave behind will survive, the head of state assures.

Many foreign brands and businesses are leaving Russia not of their own volition but because they are feeling pressured to do so, and suffer financially as a result, Russian President Vladimir Putin said on Thursday at a meeting of the supervisory board of the Agency for Strategic Initiatives.

Moscow, however, will not force anyone to stay, according to the president.

“Many of them, as you know, under pressure from their governments, are leaving our market. Well, all the best to them. However, because of the loss of our market they incur huge losses. It’s their choice, it’s their decision,” Putin said, noting that many of those companies “do it without any pleasure.”

“Who wants to lose a well-established business in which they invested effort, money? It’s not even about the money sometimes – many have invested their hearts – but under pressure from their governments are forced to leave.”

According to Putin, Russia will not allow the varied assets and infrastructure these companies leave behind to go to waste, and domestic industries may even benefit from the situation.

“They leave behind a good legacy, so to speak, they leave behind production infrastructure, well-trained personnel. Perhaps someone thinks that all of this will immediately crumble and fall apart – nothing of the sort is happening. Our companies, our entrepreneurs are picking up these enterprises and businesses and continuing this work. And quite successfully,” the Russian president assured.

After Moscow’s military operation in Ukraine began, many major Western brands announced their withdrawal from the Russian market and the suspension of investment. According to economists from Switzerland’s University of St. Gallen, more than 1,400 companies decided to quit Russia over the past year, including electronics manufacturers, automakers, hotels, banks and restaurant chains.

However, Russia managed to secure supplies of goods through alternate routes – via the so-called ‘parallel imports’ – where products continue to be delivered to Russia through third countries without a brand license from the rights holder.

In addition to this, the Russian government has launched a number of programs and initiatives to support domestic manufacturers, which fall within the framework of ‘import substitution’. According to Putin, the country produces a lot of quality products, which until recently had a hard time making their way to the domestic market due to competition from global players.

However, the departure of Western brands means “our domestic manufacturers received unique opportunities for development and we must take advantage of them,” Putin stated.

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Source:RT News

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7 COMMENTS

  1. No, it is no stealing that putin does. The infrastructures have been abandonned by companies under pressure of western governments wich manipulated public opinion through msm. The unbelievable stupidity from western ” politicians” and the Head of the EU, von der leyen acting for the ruin of europe
    Putine does the right thing. Does not let abandonned assets go to waste. Why should he ? It is just common sense.
    European politicians have no guts and obey uncle sam in all its devious acts.
    Only Gerhard Schöder, former germany’ s bondschancelier had enough guts to visit putine , his friend, while on holliday in russia last summer.
    Therefore, he got abuse by the buckload from german government and population but refused to present excuses for his friendship with putine. Good man

  2. The West is sanctioning itself not Russia….we have seen the decline in Western economies and businesses…it will only continue…..

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