Not less than 142 international businesses have already sold local companies and left, at least legally, the Russian market after Moscow’s full-scale invasion of Ukraine.
According to KSE Institute data, at least four deals took place in November. Here they are:
The sale of “NISSAN MANUFACTURING RUS” LLC (revenue in 2021 – 1,392 million USD, staff – 1,877 people) – the Nissan car assembly plant in St. Petersburg, which was stopped back in March of this year – gained the most publicity. Formally, according to Russian registers, the deal was closed on November 23, as the Japanese corporation urgently announced in its short release. The amount of the transaction is 1 ruble. It provides for buyback within 6 years. The buyer is the Russian state institute NAMI.
The second most important deal was the sale of several legal entities by Baker Hughes: JSC “Baker Hughes”, LLC “BJ Samotlor Services Vostok”, LLC “Oilamp Services”, LLC “Orenburgneftegeofizika”, LLC “Energo Innovations”, LLC “Baker Hughes Services Rus”, LLC “Tyumensky Zavod Neftepromyslovogo Oborudovaniya”, JSC “Oilamp Service” (total revenue 1,087 million USD, staff – 322 people). The Moscow firm “NEFTESERVYSNYE TECHNOLOGY” became the buyer. The company is owned by three individuals, one of whom is, for example, Oleksandr Monakhov: in the media, he previously appeared as the director of the drilling department in Baker Hughes.
Previously, the Russian goverment recognized these assets as strategic (Baker Hughes is an American international industrial service company and one of the world’s largest oil industry service companies). The corresponding notice is published on the official Internet portal of legal information.
The subject of the third agreement was the property of the American manufacturer of aluminium products Arconic Corp (JSC “ARKONYK SMZ”, revenue in 2021 – 1018 million USD, staff – 1232 people). It was sold to the Russian state metallurgical company “VSMPO-AVISMA” for $230 million. This was reported by Reuters with reference to the company’s statement. “Operating in Russia has only become more difficult, and our ability to operate in the future is increasingly uncertain in light of the current geopolitical environment,” said Arconic Chief Executive Officer Tim Myers.
In addition, it became known about the sale in November German logistics operator VTG of the Moscow-based “VTG” LLC ($ 26 million, staff – 22 employees), the tech giant Nvidia closed its representative office and office in Moscow, and also about the expansion of the franchise Krispy Kreme with Russian partners (now their business is in the process of rebranding). Also, in November, a secondary agreement on the change of ownership of “Imperial Tobacco Sales and Marketing” LLC took place (revenue 971 million US dollars, staff – 864 employees). In the summer, the British tobacco giant Imperial Brands sold this asset to a group of unknown individuals. On November 7, Serhiy Katsiev became the new beneficiary of the business. Katsiev is a billionaire and owns “Megapolis” company – the largest tobacco distributor in the Russian Federation. Katsiev is included in the sanctions list of the National Security and Defense Council of Ukraine (NSDC) in Ukraine.
The B4Ukraine coalition calls on businesses that still operate in Russia to take a closer look at the example of the departed companies and stop creating added value and jobs on the territory of the terrorist state. End all operations and business relationships in Russia or risk being complicit in its crimes.