In 2022, Western companies operating in Russia were confronted with restrictions that dramatically limited repatriating profits. Financial Times reports that about 18 of the roughly 20 billion dollars earned by Western firms in the Russian market were blocked from leaving the country. The barriers were tied to sanctions and policy measures that barred unfriendly nations from transferring earnings kept within Russian financial channels.
Among U.S. corporations, the bulk of non-withdrawable revenue belonged to Philip Morris and PepsiCo, with domestic earnings of 775 million dollars and 718 million dollars respectively. Swedish truck maker Scania accumulated 621 million dollars before sanctions compelled it to exit the Russian market. Austrian Raiffeisen Bank International emerged as the top profit generator with about 2 billion dollars that remained tied up in Russia’s financial system.
Overall, the portion of profits not repatriated by American firms stood at approximately 4.9 billion dollars. In the same period, German firms held around 2.4 billion and Austrian firms about 1.9 billion, placing them as the second and third largest holders of trapped earnings. Swiss companies accounted for around 1 billion dollars of profits left in Russia.
Raiffeisen Bank International confirmed that Russian authorities would not be able to access these profits, underscoring a governance reality in which capital movements were constrained by policy. Corporate spokespeople from Philip Morris and Scania chose not to comment to Financial Times.
At the start of September, the president of VEB.RF suggested measures to assist domestic brands, signaling ongoing concerns about sustaining local brand activity amid sanctions and restricted capital flows.
Earlier reports noted substantial losses and investor challenges tied to sanctions, with analysts and market observers debating the long-term implications for corporate asset protection and cross-border investment strategies. The evolving regulatory environment in Russia continues to influence decisions on market participation, capital allocation, and strategies for risk management among multinational firms.