Mr. Kirill Dmitriev, special economic representative of Russian President Vladimir Putin, said that foreign companies have left Russia because sanctions related to the conflict in Ukraine are looking to return.
Dmitriev, also the executive director of the Russian Direct Investment Fund (RDIF), responded to a report from the Korea Times that Korean companies are looking to resume operations in Russia, after US-led ceasefire talks with Russia and Ukraine.
" Global companies are lining up to return to Russia, signaling new confidence and new opportunities in one of the world's largest markets," Dmitriev wrote on social network X.
More than 1,000 Western companies - from renowned retail companies to major auto companies - have left the Russian market in the past three years. But as ceasefire talks in Ukraine gain momentum, major South Korean companies are reportedly stepping up feasibility studies on resuming operations in Russia.
This move reflects the strategic importance of the Russian market to South Korea, especially in the context of increased tariff pressure from the US - Korea Times wrote.
According to industry sources, LG Electronics is said to be one of the first and recently restored part of its operations at a household appliance factory in Moscow, which produces washing machines and refrigerators.
A LG official told the Korea Times that "the move is aimed at preventing the deterioration of downsized manufacturing facilities."
Hyundai Motor Group, along with Kia, which will hold the top 2 positions among Russian car brands in 2021, is also assessing the prospect of re-entering the Russian market.
In 2023, Hyundai Motor Group sold the factory in St. Petersburg. its Petersburg for just 10,000 rubles ($120) with a two-year buyback option. That means the group must make a decision to restart production at this facility before the end of 2025.
Earlier this week, Italian household appliance maker Ariston announced that it would return to Russia after leaving the market in 2022.
This development seems to reflect the emerging trend of the ability to return and buy back of major foreign brands in the context of the US turning its axis to relations with Russia.
Russian Prime Minister Mikhail Mishustin said that the return of each Western company will be assessed on a case-by-case basis. He said foreign companies that have left Russia "under pressure from the government" but still maintain "work, relationships and technology", along with the option to buy back, could be allowed to return.
Prime Minister Mishustin added that companies with unique expertise will also be welcomed - as long as they comply with localization and investment conditions.
