Following the imposition of Western sanctions due to the war in Ukraine, many Western brands announced their exit from the Russian market, leading to substantial losses estimated at more than USD 100 billion, The New York Times has reported.
The Kremlin reportedly crafted a system allowing the acquisition of these companies at significantly discounted prices or facilitating their takeover by the state. This approach enabled the Russian elite, closely tied to Putin, to benefit from the situation.
Putin has squeezed companies for as much of that wealth as possible by dictating the terms of their departure, The New York Times said. The Kremlin also imposed additional taxes on these companies, generating significant revenue for Russia.
In one notable instance, Heineken attempted to exit Russia on its own terms but faced intervention from the Russian government, which transferred its shares to a company run by a former Russian senator. Similarly, state-owned entities have taken over assets from global corporations such as Ikea and Toyota.
This orchestrated exit of Western brands from Russia has resulted in a massive transfer of wealth, the largest since the fall of the USSR, effectively overseen by Putin and his associates. The process turned what was intended to be a punitive measure against Russia into a profitable venture for the Kremlin.
(jh/gs)
Source: PAP, The New York Times