Highest-earning foreign companies in Russia 2022

In 2022, the leading foreign company by revenue in Russia was Leroy Merlin, a French retailer of home improvement goods, having earned approximately 530 billion Russian rubles. Japan Tobacco International (JT Group) ranked second with a revenue of around 433 billion Russian rubles. Following the Russian invasion of Ukraine, hundreds of Western companies exited the Russian market in 2022.

What attracts foreign companies to Russia?

With a population of over 144 million people, Russia has the ninth-largest consumer base in the world. Furthermore, the country ranks eleventh by nominal gross domestic product (GDP) globally. Russia’s membership in the World Trade Organization (WTO) reduces trade barriers and eases trade for foreign and domestic business alike. Moreover, its special economic zones, of which there are currently 45, simplify migration regime and offer tax preferences for organizations willing to do business in the region. Among the BRICS countries, Russia offers the lowest corporate tax rate of 20 percent, compared to 25 percent in China and 34 percent in Brazil.

Exodus of foreign companies from Russia

In response to the war in Ukraine that started in February 2022, foreign companies began limiting their business ventures or completely exiting from the Russian market. In fact, all 10 of the most valuable brands worldwide have withdrawn, suspended, or scaled back their sales, shipments, or operations in the region. The exodus of international companies had a negative impact on employment in the country, whereas foreign brands were estimated to suffer profit losses. As of November 2022, the British energy company BP reported the highest loss of 24 billion U.S. dollars following its withdrawal from Russia.