A draft bill about external oversight of foreign-run companies that announced their withdrawal from Russia requires finalization, according to government sources. The document was prepared in March amid large-scale announcements by Western firms planning job cuts in Russia. In practice, only a minority of these companies have actually exited the market so far.
Most firms have suspended operations hoping for a shift in the foreign policy climate. At present, Western owners are weighing options with business partners and Russian authorities to address the situation. Many employees at Western firms continue to receive wages.
Consequently the government paused the adoption of the draft law titled “On External Management for Corporate Governance.” The concept envisions prohibiting foreign owners from disposing of company assets, laying off workers, or taking steps necessary for future operations once external management is installed. The plan would transfer external administration duties to the state agency VEB.RF for a period of six months, after which the company would be sold at auction. If there are no buyers, the government would act as the purchaser.
Rosbank appears capable of avoiding expropriation. Its controlling stake lies with the French banking group Societe Generale, which signaled an exit from Russia and the sale of its Rosbank shares earlier in the year.
On April 11, it was announced that Interros, controlled by Vladimir Potanin, had acquired a stake in the French banking group within its Russian banking and insurance businesses. Details were not disclosed. Previously, from 2006 to 2011, Rosbank belonged to Interros before control shifted to a French group.
off Cyprus
Brewing groups Heineken and Carlsberg also plan to transfer ownership of their Russia operations to new owners. In the meantime, their breweries will continue to operate. Heineken owns more than 300 brands, including Heineken and Amstel. In Russia, the company also produces beer under brands such as Okhota, Three Bears, Bochkarev, Zhigulevskoye and others.
The **concern** has guaranteed that salaries for Russian employees will be preserved through the end of 2022, according to a March 9 statement.
British tobacco company Imperial Brands, which markets Davidoff and other brands, is negotiating to transfer management of its Russian division to a local entity. While the exact name remains undisclosed, talks are ongoing. In Russia, the British owners also operate in Ukraine, where work has also stopped.
British American Tobacco has announced a staged wind-down: it initially continued operations but later halted them. In Russia, it markets BAT, Kent, Rothmans, Vogue, Dunhill, Pall Mall, Lucky Strike, and Java Gold. The company noted it has begun transferring its Russian business rapidly.
On March 17, the Raven Property Group, a British developer, said it would hand over its Russian operations to a local management entity via a Cypriot firm. The buyer and the operational owner are Russian managers, enabling continued activity and job preservation.
waiting to move
The handover of operations to Russian managers does not always go smoothly. Vedomosti reported on April 11 that top managers of Obi, a retail and home goods chain, clashed with its German majority shareholder Obi GmbH, which announced an exit from Russia on March 8 but kept stores running until March 17.
Subsequent announcements claimed that Obi stores in Moscow and St. Petersburg would reopen within a week, followed by a nationwide resumption in two weeks. Obi GmbH issued a rebuttal, calling the reports speculative.
The future of Obi’s Russian arm remains unresolved. One option is a sale to a third-party buyer; another is a sale to the group’s top managers. Reports indicate the majority owner initially sought a cash sale but later considered handing control to Russian managers for a symbolic price, yet the departure of German executives halted the deal.
Wargaming, the creator of World of Tanks, World of Warships, and World of Warplanes, announced on April 4 that it would leave Russia and Belarus. Employees were given four months to close Minsk offices, with compensation offered. Options include dismissal or relocation to Lithuania, Poland, or the Czech Republic, though relocation targets only valued staff. Wargaming continues to oversee game operations in Russia and Belarus through Lesta Studio, based in St. Petersburg.
tormented by suspicion
Experts suggest that many Western firms will not rush to depart Russia completely. The pressures are not purely financial. The legal and reputational landscape adds to the uncertainty, with firms having to weigh long-standing relationships and strategic stakes in the region.
Analysts note that the simplest exit model remains selling the company to a Russian owner or government entity with a future right to repurchase. While the sale price may include a discount, the option to buy back under defined conditions persists.
Georgy Ostapkovich, head of the HSE ISSEK Center for Business Studies, estimates that around 40 percent of announced withdrawals may re-enter the market, while about 60 percent may exit. The coming months and geopolitical developments will heavily influence these outcomes.
Meanwhile, some caution that transferring control to trusted individuals or offshore entities carries significant risks. Normal business practice typically avoids such maneuvers, with many plans proving ineffective.
Alexander Borisov, a senior figure at the Russian Chamber of Commerce and Industry, emphasized that the fate of Western businesses will partly hinge on the Russian division’s share of the group’s global revenue. If the segment accounts for only 1-5 percent, exits may be feasible. If it rises to 10-15 percent or more, firms are likely to delay decisions.
Observers say Obi could serve as a stress test for future corporate decisions should authorities push back on headquarters’ preferences.