Western Firms' Return to Russia Blocked by Putin

President Vladimir Putin announced that Western companies, which left Russia amid the Ukraine conflict, will face restrictions if they attempt to repurchase their previously owned assets. This measure is in response to the companies' abrupt departures and to prevent them from overshadowing local enterprises.

In a bold move, President Vladimir Putin declared that Western firms, which exited Russia amid the Ukraine crisis, will find the door closed should they attempt to buy back their businesses cheaply. Putin emphasized that niches filled by local enterprises will remain off-limits to former foreign owners.

The exodus of hundreds of Western companies, following Russia's military intervention in Ukraine, saw varied strategies from selling assets to outright abandonment. Notable companies like Renault, McDonald's, and Henkel slipped clauses for potential buy-backs into their exit contracts, though details remain largely undisclosed.

At a Moscow business forum, Putin addressed the importance of monitoring potential buy-back scenarios of Western firms, stressing the need for diligence in such cases. He reminded Russian enterprises of the persistent nature of Western sanctions, cautioning against assumptions that trading hurdles would be lifted, and hinting at sustained geopolitical rivalry.

(With inputs from agencies.)