Exodus of Western firms prompted growth of Russian businesses – Putin
Foreign companies that left Russia due to Western sanctions are swiftly being replaced by local ones, President Vladimir Putin said on Friday while addressing the St. Petersburg International Economic Forum (SPIEF).
He noted that while Russia never asked anyone to leave, the exit of multinationals turned out to be a benefit, as it encouraged domestic businesses to grow and expand.
“A notable event and a powerful impetus for our business was the replacement of transnational corporations that left the Russian market,” Putin stated.
“Unfortunately, [Western firms] buckled under the powerful pressure from foreign political elites. We have never kicked anyone out of our market and economy. On the contrary, we even offered to weigh the pros and cons, to think carefully about their Russian partners and the possible consequences of such a step. Each of these companies had the right to choose.”
Putin noted that many foreign companies manufactured their products in Russia prior to their exit but that their withdrawal from the market did not affect the supply of goods.
“Many foreign brands have long been selling products that are fully produced at our facilities. In fact, these are Russian goods, only with foreign logos. So their production with the departure of the brand owners will not stop. Only the logo changes. The profits from this business remain in our country,” he stated.
According to the head of state, Russian producers submitted over 90,000 applications to register trademarks in 2022. New brands sprung up in a variety of sectors, from clothing and footwear, to software, chemicals, cosmetics, among others.
Putin noted that Russian producers are calling on the government not to let foreign companies that left come back to the Russian market, but he said that the country will not be shutting out these firms because it welcomes competition. He added, however, that Russia will make decisions regarding those wishing to return on a case-by-case basis and will always “put the interests of our domestic manufacturers first.”
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