Kathrine Frich
Russia’s business landscape is continuing to shrink as foreign companies reassess their exposure to the country.
New data shows that departures accelerated last year amid growing pressure from Moscow.
Analysts say the trend reflects deeper economic and political shifts linked to the war in Ukraine.
Seizures accelerate
Around 80 foreign companies left the Russian market entirely in 2025 as authorities expanded the practice of forcibly taking over foreign-owned assets.
According to TVPWorld, Moscow has increasingly targeted private international firms since its 2022 invasion of Ukraine.
The policy is widely viewed as an effort to fund the war and compensate for budget shortfalls caused by Western sanctions.
Last year, the measures were extended even to companies with decades-long histories in Russia.
An analysis by the Kyiv School of Economics said the 2025 exits brought the total number of companies that have fully withdrawn since 2022 to 547.
Scale of departures
The KSE estimated that those 547 firms represent about 12.8 percent of all foreign companies that were operating in Russia before the invasion.
The data also shows a fragmented picture of international involvement.
About 32 percent of foreign firms have suspended operations or announced plans to leave.
More than half, roughly 55 percent, are still active in the Russian market despite the risks.
Between October and December alone, researchers recorded 21 complete exits, including 11 business sales, nine liquidations and one case involving direct asset seizure.
Major names affected
Among the companies that exited through sales was German insurance group Allianz.
Finnish telecoms firm Nokia was listed among those that fully liquidated their Russian operations, according to the KSE analysis.
Another high-profile departure was Citibank. The Russian subsidiary of US financial giant Citigroup announced in November 2025 that it would leave the country entirely.
These moves underscore the growing difficulties faced by international firms trying to maintain a presence in Russia.
Forced takeovers
Some companies have not left by choice. Later in 2025,
Moscow restructured Baring Vostok Capital Partners, one of the oldest foreign investment firms in Russia, into a Russian legal entity, Ozon Holdings.
In mid-January 2026, the Russian assets of Danish insulation producer Rockwool were transferred to Russian-controlled entities, with a reported net equity value of 469 million euros.
Similar measures were applied to CanPack, a Polish-American maker of metal beverage packaging.
Sources: TVPWorld, Kyiv School of Economics, Digi24.
