Thousands of companies left Russia because of the Ukraine war. Now some of them are apparently working on a return – under difficult conditions.
Moscow – North Korea seems to be the reason why South Korea is particularly intensive on the development in Ukraine war look. So again and again Seoul’s military to the role of the northern neighbor find their way to the public. To the type and scope of the support, the Pyongyangs rulers Kim Jong-un Russia’s president Vladimir Putin granted in his invasion, but also to the losses.
The companies from South Korea also seem to pursue the progress in the war zone more and more intensively. And to hope that the efforts of US President Donald Trump to wear fruit quickly. The first corporations are apparently already preparing steps to make production in Russia start again.
Western companies before Russia return? “A number of CEOs are Hingersist”
The German press agency (dpa) mentions the LG company from the electronics industry, which at least tested its machines in a Moscow factory at least as a test. A group spokesman said Russian media, since there are signs of a possible end of the war, rust is to be prevented after several years of standing.
The South Korean car manufacturer Hyundai Apparently it is also also preparing to resume the business in Russia. Daughter companies are looking for headhunter logisticians or IT specialists through the largest Russian online personnel. Media in Seoul see this as a sign of a planned resumption of the activity on site.
However, companies from the Far East are apparently anything but an exception. The dpa cites a connoisseur of the German economy that reveals: “In the past few weeks, a number of board heads have traveled to Russia.” Hardly anyone from business circles is still officially expressed because the topic is delicate because of the still applicable sanctions.
Russia and Western companies: Many large corporations are still skeptical
The independent Russian portal The Bell already reported at the beginning of March that more than 60 of the largest foreign companies that have turned their backs on Russia after the sales were checked for a possible return. Only 16 would have answered and none of the reactions were positive. A no came from Nissan from Japan, Nokian Tyres from Finland, Henkel or Ikea’s Dutch corporate mother Ingka.
However, Russia speculates with the comeback of US companies due to the relaxing relationships with Washington. Moscow is still cautious, but the Ministry of Economic Development seems to be working on the conditions for the returnees.
“Patriotic rules” were created: Returning automobile manufacturers in Russia would have to work with local partners, had no entitlement to subsidies and were obliged to make a complete technology transfer.
Russia ready for the return of companies: there is still a lack of specific inquiries
Kirill Dimitrijew, head of the Russian fund for direct investments, said according to the state Russian news agency Tass In the TV station Channel One: “We see a large number of inquiries from American companies, including us, in the energy sector and other areas. But they can only get where Russia welcomes them.” The 49-year-old had previously visited the United States that he wanted to focus on “common partnerships”.
The companies seem to be more reserved in the financial sector. Elvira Nabiullina, head of the Central Bank of Russia, said according to the Tass At a meeting with the faction of the Communist Party of the Russian Federation: “As far as companies are concerned who want to return, we have not yet received any inquiries from the financial sector.” It is important anyway to consider national interests.
The deputy finance minister Iwan Tschebeskow also had to RBK admit that there are still “no concrete inquiries” of foreign companies with regard to a return. In contrast, applications from corporations that want to leave Russia would still meet. However, the numbers decreased, most recently there were four in a week.
Samsung back to Russia? South Koreans are supposed to strengthen marketing activities
However, some companies could also really feel driven back. In order not to fall behind the competition. As the LG mentioned at the beginning. So reported The Korea Economic Dailywhose arch -rival Samsung reinforced his marketing activities in Russia and prepares for fully into operation the work there.
However, the electronics group emphasized that there has been no decision as to whether the business would be resumed or not. In the meantime, an LG spokesman explained: “We produce a limited amount of washing machines and refrigerators from stocks and materials of our Russian subsidiary.”
Hyundai apparently before Rusic return: “Can’t give up market so easily”
Mentioned with regard to Hyundai Korea Joongang Dailythe buyback option for the work in Russia runs out in December. The Hyundai brand has been re -registered with Rospatent, Russia’s federal service for intellectual property. Apparently to prevent it from being canceled after three years without use. However, the car manufacturer does not want to confirm a return, but emphasizes that nothing has yet been decided.
“Russia is a market that Hyundai cannot give up so easily,” says Jeong Min-Hyeon, senior researcher of the Russian team at the Korea Institute for International Economic Policy: “Russia is also welcome Hyundai’s return because it has to attract high-quality investments in production and expand cooperation with eastern countries instead of western countries.” The Russia expert estimates that the negotiations will begin soon.
However, the article also mentions that Renault also think about a return of Russia as well as Toyota. The Japanese are said to have even met with former Russian dealers in Dubai. Compared to other carmakers such as General Motors, Hyundai is in the pole position – because the South Koreans have left themselves open with the buying option of the work. A decision with foresight, as is now evident. (mg)
