Hold or fold? That is the dilemma facing the hundreds of Western companies still operating in Russia as Donald Trump returns to the White House with a promise to end the Ukraine conflict while Moscow's tougher exit conditions make it costlier to leave. - REUTERS
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00:00Hold or fold, it's the dilemma facing hundreds of Western companies still operating in Russia.
00:08That as Donald Trump returns to the White House promising to end the Ukraine conflict
00:13and while Moscow's tougher exit conditions have also made it costlier to leave.
00:18Many companies including Renault, McDonalds and Heineken have left Russia since Moscow
00:23sent troops into Ukraine three years ago.
00:26The firms usually took big write-downs and sold their assets at steep discounts demanded
00:31by the Kremlin.
00:33Others, namely makers of food and hygiene products like PepsiCo and Mondelez, have stayed
00:38citing humanitarian reasons.
00:41Russia tightened its exit terms in October to encourage businesses to stay.
00:46Moscow demanded discounts of at least 60% on exit transactions and a 35% voluntary contribution
00:52to Russia's budget from the deal price.
00:55Reuters spoke to 15 people involved in dozens of Western corporate exits from Russia for
01:00this story.
01:01They said companies still present would carefully watch what Trump can deliver and adjust their
01:05plans accordingly.
01:07It's far from clear what Trump can accomplish in his second term.
01:11His advisers have now conceded the Ukraine conflict will take at least months to resolve.
01:17Yet some analysts believe his arrival may give some companies the political cover to
01:22stay on in Russia.
01:24Others could see prospects for potential sanctions relief as an opportunity to leave.
01:29One investor said companies already reluctant to go may be more likely to wait things out.