Leaving — entering: No more than 15% of German companies have left Russia since 2022
The number of German companies that have severed ties with Russia after 2022 does not exceed 10-15%. This was stated to Izvestia by Russian Ambassador to Germany Sergey Nechaev. According to him, by the beginning of the SVR, about 4.5 thousand enterprises with German participation were operating in the Russian Federation. Thus, almost 4,000 enterprises may actually remain on the Russian market. Under the conditions of European sanctions, entrepreneurs are looking for ways to maintain their presence in Russia in the most flexible format, experts say. Some of them transferred control to local management and used mechanisms providing for the possibility of return.
German companies in Russia
The business from Germany retains a significant presence in the Russian market, although formally many concerns have announced their retirement after 2022. Since the beginning of the SVR, representatives of the German business community have been under tremendous pressure from Western elites and have been forced to make "difficult decisions," Russian Ambassador to Germany Sergey Nechaev told Izvestia. As practice has shown, most have taken the path of reducing public activity and refusing to implement new projects, he noted.
— At the same time, German economic operators have tried to maintain their actual and legal presence in the Russian market. Some concerns formally left Russia, transferring control to local management, but provided for a buyback option. The number of companies that have severed ties with our country does not exceed 10-15% of the number of about 4.5 thousand enterprises with German participation operating in Russia by the beginning of its operation," the diplomat noted.
Based on these calculations, almost 4 thousand companies can actually keep their assets in the Russian Federation. Earlier, the Bild newspaper reported that about 1,400 German companies operate in Russia. The difference in numbers may be explained by the fact that we are talking about companies registered in the country with German capital that are currently active. However, in fact, German business is much more widely represented in the Russian market.
The companies transferred control to local management and used various corporate mechanisms that allow them to maintain control over assets and provide for the possibility of a return, Arthur Leer, vice president of the Association of Exporters and Importers, managing partner of Lex Alliance Law Firm, explained to Izvestia.
— Among these instruments, options and other forms of contractual structures are used, focused on the subsequent restoration of direct participation in management. We are talking about the enterprises of the service segment, including companies serving the oil and gas complex and other raw materials industries. The key areas are also machine tool manufacturing, mechanical engineering, the production of medical components and the medical industry as a whole," he said.
The names of such companies are not disclosed, as this creates risks for them and increases external pressure, but the fact that a significant number of German players remain in the Russian market is a steady trend. The expert emphasizes that the approach reflects not the abandonment of the Russian market, but its temporary freezing.
— The first decisions to wind down operations were made under conditions of uncertainty, but subsequent dynamics show that many processes were suspended rather than completed. Against the background of economic difficulties in the European Union and constant sanctions pressure, the corporate strategies of German companies are shifting towards finding ways to maintain their presence in Russia in the most flexible format," he explained.
For example, the German building materials manufacturer Knauf transferred its Russian business to local management in 2024 with a buyback option that will be valid for two years. Henkel and Mercedes-Benz have left the possibility of repurchasing their assets in Russia, Alexey Khizhnyak, Director General of the Mikhailov and Partners law firm and a member of the Moscow Business Russia, said in a conversation with Izvestia.
"In this regard, we can say that the German business market and German counterparties have not lost touch with Russia, have not lost the desire to work here, and are normalizing relations in a stable foreign policy environment," he said.
What attracts German business to Russia
According to the Russian ambassador to Germany, at the peak of trade and economic relations between the two countries, up to 7 thousand German companies and enterprises worked in Russia. Entrepreneurs were attracted by the capacity of the Russian market, the rate of return on investment, favorable working conditions, as well as successful long-term cooperation experience.
—German companies have been given priority in terms of creating the most comfortable environment for business development, including the proven practice of concluding special investment contracts," Sergey Nechaev emphasized.
The German authorities are distancing themselves from the fact of pressure on their own business, however, they recognize that the business community remains interested in the Russian Federation.
— German companies make decisions about continuing operations in Russia solely on their own. The German government has no opinion on this," the German Embassy in Moscow told Izvestia.
According to Bild, the turnover of German companies operating in Russia in 2024 amounted to about €20 billion. Some of them explained why they continue their activities. For example, the Beiersdorf company, which produces cosmetics under the Eucerin and Nivea brands, stated the need to supply the population, and also pointed out social responsibility to its employees. Metro, in turn, noted that Russia remains a large market and is "important for the group's overall portfolio."
Interestingly, in recent years, new companies have even opened in Russia, the founders of which are German individuals or legal entities, according to media reports. So, from the end of 2021 to 2025, founders from Germany opened more than 100 companies in Russia.
The possibility of returning business to the Russian Federation
The most notable departure of German entrepreneurs turned out to be in the field of industrial equipment, mechanical engineering, large-scale equipment and turbine maintenance. Vladimir Putin has repeatedly indicated that Russia is open to the return of foreign firms. However, it will have to take into account new realities and the structural changes that have taken place in the Russian economy in recent years.
— First of all, we are talking about the redistribution of commodity flows, changing supply chains and structures, and the development of market niches vacated by the departure of Western companies, domestic manufacturers and partners from friendly countries. This excludes an automatic return to the previous status quo and requires a thorough study of all circumstances on an individual basis," said the Russian Ambassador to Germany.
According to the diplomat, Russia regularly broadcasts "relevant signals" during contacts with representatives of both large and small and medium-sized businesses, and the Russian Federation's position is understood. According to him, the German business world and "quite a few prudent politicians" are interested in the speedy normalization of Russian-German trade and economic ties, including in the energy sector, which for decades has served as the basis for the country's well-being, competitiveness and high quality of German goods.
Russia remains attractive to many German companies, as it is an established market with a clear system of supply and demand and a strategy for customer behavior, says Artem Sokolov, senior researcher at the MGIMO Institute of the Ministry of Foreign Affairs of Russia.
— German business has been active in Russia since Perestroika. During this time, we have accumulated tremendous experience and connections with Russian partners," he told Izvestia. — The German business does not want to leave, because it still considers the Russian market as an important source for making a profit and because of its unwillingness to give way to its competitors from other countries.
The analyst points out that the most far-sighted entrepreneurs understand that their departure will make the return process difficult, since in almost all cases there are analogues of German products that will quickly occupy an empty niche.
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