Striking a balance between external pressures and internal priorities: challenges and opportunities for international companies in Russia

In May 2025, The Foreign Investment Advisory Council in Russia (FIAC) in cooperation with B1 Group surveyed foreign companies that remain active in Russia.

We gathered insights from international businesses with ongoing operations in Russia, including those that have transitioned to Russian management, as well as from companies that had exited the market for various reasons. While both current and potential FIAC members who participated in the survey represent a broad range of industries, the majority of respondents (63%) operate in the pharmaceuticals and life sciences sector, or in food and non-food manufacturing.

"We are seeing a modest but steadily growing sense of optimism among international businesses—those that remain under foreign ownership and those now managed locally. Many are preparing to scale up their operations and invest in long-term growth. Responsible international businesses that have chosen to stay have now clearly demonstrated their resilience: they’ve withstood external pressures, preserved their workforce and technological capabilities, and successfully adapted their logistics and supply chains."

Alexander Ivlev

Foreign Members Coordinator, Foreign Investment Advisory Council (FIAC) Advisor, B1 Group

KEY HIGHLIGHTS AND FINDINGS

of respondents reported that their Russian business remains resilient

of surveyed companies transitioned to Russian control

foreign companies that have chosen to stay in Russia are increasingly relocating functions to their local offices

of respondents view their Russian business as contributing positively to the local community

of respondents have seen no major changes to HR conditions

of surveyed companies are facing logistical challenges; this point rose up to 14% over the past 18 months

of respondents are struggling to source equipment

of respondents see the risk of doing business in Russia as above average; this point decreased by 8% over the past 18 months

of companies are actively seeking new sales markets; this point dropped significantly by 10% over the past 18 months

of foreign companies operating in Russia are confident they can contribute to improving the local business environment

of companies are expecting revenue growth this year

of companies now operating under local management report no ties or insights into whether their former foreign parent companies plan to return; meanwhile, 7 foreign companies that had withdrawn from Russia indicated they are considering re-entering the market

RESPONDENTS VIEW THEIR BUSINESS IN RUSSIA AS A SUCCESS, WITH KEY CORPORATE DECISIONS LARGELY DRIVEN BY LOCAL MANAGEMENT

Nearly all respondents agreed that their Russian business remains successful, with 92% sharing this view. Notably, none of the participants had a differing opinion, either now or in 2023. According to respondents, global headquarters are now rarely involved in decisions related to operations in Russia.

When asked about their relationships with the parent company, only 5% said the parent company remains the ultimate decision-maker. Meanwhile, 75% reported that their international headquarters focus exclusively on strategic management, delegating all operational matters to local teams. Another 10% said the Russian office handles every corporate decision, while an additional 10% indicated that the former parent company no longer has any involvement with their Russian operations.

OVER THE PAST 18 MONTHS, THERE HAS BEEN A MODEST INCREASE IN THE SHARE OF COMPANIES WHERE DAY-TO-DAY OPERATIONS ARE MANAGED LOCALLY—FROM 71% TO 75%.

When asked why their company has remained in Russia, most respondents pointed to the positive social impact their business has on people and communities (63%), as well as a sense of responsibility towards their employees in Russia (59%). Additionally, 46% believe their business is unaffected by politics.

THE TALENT AND TECHNOLOGY LANDSCAPE HAS REMAINED LARGELY STABLE

Respondents’ views on their staffing situation and talent pipeline have changed little since autumn 2023.

Once again, around 60% of respondents reported no major changes in their HR management practices. Similar to 18 months ago, those who noticed significant changes mostly pointed to a decline in the number of skilled workers (50%) and expatriate employees (45%), as well as a reduction in recruitment activity (20%).

THE SHARE OF RESPONDENTS REPORTING REDUCED RECRUITMENT HAS FALLEN BY ALMOST ONE-THIRD OVER THE PAST YEAR AND A HALF—FROM 29% TO 20%—PROVIDING FURTHER EVIDENCE OF GROWING OPTIMISM ABOUT THE OUTLOOK FOR RUSSIAN BUSINESS.

When assessing changes in key business functions, our respondents most frequently reported challenges with logistics and sourcing new equipment suppliers—much like 18 months ago. The share of those citing these difficulties has risen since 2023, from 63% to 77% for logistics and from 60% to 74% for sourcing. In contrast, the proportion of respondents forced to seek alternative markets has dropped sharply, from 14% to 4%.

DOING BUSINESS IN RUSSIA IS NOW SEEN AS LESS RISKY THAN IT WAS A YEAR AND A HALF AGO, THOUGH SOME FACTORS STILL REMAIN THAT COULD PUSH COMPANIES TO LEAVE THE COUNTRY

Over the past 18 months, respondents’ perceptions of risks associated with operating in Russia have improved. In 2025, only 77% of those surveyed viewed the risk as above average, down from 85% in 2023. There is further evidence that foreign companies operating in Russia—or that have shifted from foreign to local management—are feeling somewhat more optimistic about the future. Over the past 18 months, the share of respondents who believe there are factors that could force them to leave the Russian market has declined slightly, from 80% to 76%.

FOREIGN COMPANIES IN RUSSIA CONTRIBUTE TO SHAPING A BETTER BUSINESS LANDSCAPE AND PLACE A STRONG EMPHASIS ON SOCIAL RESPONSIBILITY

A vast 90% of respondents believe that foreign-owned companies operating locally have a positive impact on the local business environment—and none disagreed. Foreign companies still active in Russia, as well as local firms that have split from international groups, attach great importance to corporate social responsibility. Among those surveyed, 94% rated it as important or very important (giving scores 4 or 5).

As many as 94% of our respondents are involved in corporate social responsibility initiatives, with 46% running their own programs rather than funding third-party projects. Corporate social responsibility initiatives reported by our respondents typically focus on health (67%), environmental protection (60%) and education (52%).

The majority (79%) feel their company delivers on its mission by getting involved in corporate social responsibility. Meanwhile, 70% noted it helps boost employee loyalty and improve the company’s reputation. An overwhelming 98% of the companies surveyed allocate funds for corporate social responsibility initiatives.

NOTABLY, 12% ARE WILLING TO SPEND MORE THAN 1% OF THEIR ANNUAL REVENUE FROM RUSSIAN OPERATIONS ON THESE EFFORTS.

OPTIMISM ABOUT RUSSIA’S BUSINESS OUTLOOK IS GAINING MOMENTUM, WITH COMPANIES GEARING UP TO BROADEN THEIR FOOTPRINT ACROSS THE COUNTRY

Over the past 18 months, respondents have become noticeably more positive about their business prospects in Russia. The share of those anticipating an increase in annual revenue has climbed from 47% to 63%, while that of those expecting a decline has dropped from 34% in 2023 to just 12% this year.

This optimistic attitude may explain why 46% of respondents are considering investments in Russia or other EAEU countries over the next three years.

Many are also thinking about expanding into Russia’s remote and hard-to-reach areas. More than half (53%) of those operating in Russia are ready to grow their business there.

THE TOP DESTINATIONS ARE THE FAR EAST (44%) AND SIBERIA (38%). MEANWHILE, 16% SAID THEY WOULD CONSIDER WORKING IN THE ARCTIC, AND 9% MENTIONED THE NEW RUSSIAN TERRITORIES.

SEVERAL COMPANIES THAT WITHDREW FROM RUSSIA AFTER 2022 ARE NOW WEIGHING A COMEBACK

Companies now operating under local management report no ties or insights into whether their former foreign parent companies plan to return. When asked about the possibility of their former foreign parent company returning to Russia, 100% of companies still operating in the country.

Out of the 13 foreign companies surveyed through AmCham Russia, more than half—seven—are considering returning to the Russian market.