30% of companies that exited Russia have lost return option rights
About 30% of foreign companies that are members of the American Chamber of Commerce in Russia (AmCham Russia – which includes not only American but also European and Asian firms) and that sold their Russian businesses have already had their buyback options expire. This was stated by AmCham Russia President Robert Agee in an interview with Expert magazine.
“In the first year of sanctions – 2022 – the maximum duration of buyback options was five years. In 2023, this was reduced to three years. Now, such approvals can’t be obtained at all”, Agee noted.
Earlier, in an interview with RBC, the head of the American Chamber of Commerce estimated that 4–5 companies – presumably from the FMCG sector – might return to Russia as early as 2025, if the geopolitical situation stabilises and “a place is found for them in the market”.
According to Ruslan Alisultanov, chairman of the board at Health & Nutrition (formerly Danone Russia), about a third of foreign companies that exited Russia have no agreements in place for a potential return. “Experts point to a similar statistic for all foreign companies that have left the Russian market”, said Alisultanov, commenting on Agee’s estimate.
“For example, Danone [a French dairy producer] has completely lost control of its former business in Russia and won’t be able to return to the market”, Alisultanov noted.
In his Expert interview, Agee also mentioned that “there is ongoing discussion as to whether even existing options should be exercised”. He said AmCham Russia held a webinar on the potential return of companies to Russia, with 125 American companies participating. “The questions were being asked by their Russian representatives, while the headquarters simply listened in silence.” In Agee’s view, a return of American companies to Russia will only begin after “some form of peace agreement is reached between Russia and Ukraine”, sanctions are eased, and cross-border banking transactions resume.