According to Russia’s RIA news agency, foreign investors have withdrawn approximately $36 billion from Russia after selling their Russian operations between March 2022 and March 2023, as reported by the Russian Central Bank’s analysis of data.
In response to Russia’s military involvement in Ukraine since February 2022, many of the world’s largest companies have either ceased operations or downsized their presence in Russia. These actions have led to a significant outflow of capital from the country.
Despite the withdrawal of foreign firms, the Russian Central Bank remains optimistic about the impact on the Russian economy. The bank highlights that there were around 200 deals involving the sale of businesses during the period from March 2022 to March 2023, with only 20 percent of those deals involving large asset sales exceeding $100 million.
Russia has referred to its military actions in Ukraine as a “special military operation,” while Ukraine and its Western allies have characterized it as an invasion aimed at annexing territory.
Recent reports indicate that Dmitry Medvedev, the former president of Russia and a close confidant of President Vladimir Putin, stated that talks with Ukraine would not be possible as long as President Volodymyr Zelensky remained in power. Medvedev described Zelensky as a clown and expressed skepticism about negotiating with the current Ukrainian government.
The withdrawal of foreign investors and the strained relationship between Russia and Ukraine have significant implications for both countries and the broader geopolitical landscape. The ongoing developments will continue to be closely monitored by observers as they unfold.