War in Ukraine: Did the corporate exodus to Russia happen?

McDonald’s, Starbucks, LVMH… When, in February 2022, the Russian army launched its offensive in Ukraine, many multinationals have quickly announced the end of their activities in Russia. Nearly 3,000 companies from 85 countries were then present on Russian territory. They employed around 1.3 million people, or 2% of the working population. Six months after the start of the conflict, about 40% of them still said they wanted to stop their activities in the country.

But a year later, the number of companies that have actually divested from Russia is relatively low, according to a recently published study by academics Simon Evenett and Niccolo Pisani. In total, they identified 1,404 European companies or companies belonging to G7 countries that had activities in Russia. By the end of November 2022, 120 of them had actually left. This corresponds to “8.5% of companies in the EU and the G7”, write the authors, who focused on companies that have sold at least one of their Russian subsidiaries.

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German companies stay in Russia

Of these 120 companies, 25% of them are American, 12.5% ​​Finnish, 11.7% German, 10.8% British and 7.5% French. On the other hand, Germany is the worst student in the group: the country represents the largest share of companies that have stayed (19.5%), followed by Cyprus (16.4%) whose figure is probably explained by the number of Russians based in Cyprus. Next come the United States (12.4%), Japan (7%), Italy (6.3%) and France (5.4%).

Regarding theFor American and Finnish companies, the proportion of companies leaving is considerably higher than those remaining. This is also the case for the British, Danish and French, to a lesser extent however. Conversely, itthose with headquarters in Italy are more strongly represented among the remaining companies than the party companies, and to a lesser extent the Japanese companies. Why such a high percentage? “Compensating pressures and barriers erected by the Russian government have limited divestment – ​​a factor that may have been underestimated by Western activists, commentators and officials – or at least delayed exit,” explain the authors. study authors.

It was also interested in sectors of activity. Thus, there are fewer confirmed exits of EU and G7 firms in the agriculture and resource extraction sectors than in the manufacturing and services sectors. This observation can be explained because the two institutions have ruled out attacking the sectors of food, agriculture, health and pharmacy, so as not to directly affect the population.

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Twenty-five French companies pointed out by Yale

At Yale University, researchers regularly update a database that lists the attitude of several thousand companies in Russia. This database, which details the strategic choices of more than 1,000 companies, clearly aims to encourage companies to cease their activities there. She cites in particular 25 French companies which are continuing their activities, including Auchan, Babolat, Bonduelle, Clarins, Etam, Eutelsat (the satellite company has been questioned by RSF for the broadcasting of Russian channels), Etam, Lacoste, Lactalis, Legrand , Orano, Veolia, Valeo, Vinci etc.

The American university also lists those which have postponed their investments or developments: Accor, Air Liquide, Servier, Sanofi etc. As well as those who have reduced their activities: Leroy Merlin, Geodis, Saint Gobain. And those who have suspended their activities while keeping the option of a return open: Air France, Alstom, Axa, BNP Paribas, Danone, EDF, LVMH, Michelin, Safran, Ubisoft etc.

Finally, those who have withdrawn: Deezer, Publicis, L’Occitane, Renault, Schneider, Société Générale, Sodexo, many of which have managed to sell their activities to Russian companies. This is particularly the case of Renault which announced, in May 2022, the sale of its assets to the Russian State in May 2022.

NGOs still mobilized against the activities of TotalEnergies in Russia

Last October, the TotalEnergies group was the subject of a complaint from several NGOs, after the revelations of the newspaper The world which recalled that until September it held 49% of the Terneftegaz joint venture, operator of the Termokarstovoye field, in the Russian Far North. According to the daily, this deposit was used to produce fuel for Russian planes engaged in the conflict in Ukraine until at least July 2022. Information denied by Total, which assured that it produced “no kerosene for the army Russian”.

The complaint was closed by the national anti-terrorist prosecutor’s office on January 16 for “insufficiently characterized offense”. The NGOs are now finalizing an appeal before the general prosecutor’s office. Lawyer William Bourdon, whose firm is behind the complaints of two NGOs, Darwin Climax Coalitions and Razom We Stand, says he is “stunned” by this “political decision”. It does not exclude the filing of a complaint with civil action against the French energy giant.

In Yale’s ranking, the company TotalEnergies appears in the category of those who have suspended their activities, Total having pledged “not to provide capital for new projects, to stop buying Russian oil and to withdraw from the Arctic LNG 2” liquefied gas plant project. The boss of TotalEnergiesPatrick Pouyanné, had nevertheless defended, last November, before the French deputies the maintenance of the liquefied natural gas contract in Russia affirming that it was used above all for the “well-being” of Europeans.