Russia faces a “critical fork in the road” with international groups likely to step back from the market, an advisory group Global Counsel said.
The group has analysed the financial statements of 46 multinational groups with a big presence in Russia, such as BP, Royal Dutch Shell, Deutsche Bank, Siemens and Lafarge, noting a picture of a deteriorating economy.
According to the chief economist of Global Counsel, Gregor Irwin, the next 18 months are likely to be critical in determining whether more international investors pull back from the Russian market. The majority of companies said they are committed to long-term involvement in Russia, but they can withdraw further if the economy does not stabilize.
