Almost all German companies still operating in Russia intend to remain on the market, prioritising commercial interests over political and ethical considerations as the war against Ukraine continues. On 1 January, Matthias Schepp, head of the German-Russian Chamber of Foreign Trade in Moscow, presented the results of a survey among around 260 German firms active in Russia, showing that only 4% plan to leave in the foreseeable future, according to a survey of German companies operating in Russia.
Schepp said most companies aimed to continue doing business in Russia, despite unprecedented Western sanctions and the withdrawal of hundreds of international brands since the start of Moscow’s full-scale invasion of Ukraine. He argued that many firms see remaining in Russia as economically rational, even as the conflict drags on.
Sanctions bite, but fears focus on future risks
The survey suggests that more than half of German business leaders in Russia acknowledge that Western sanctions are causing serious or very serious damage to the Russian economy. Against this backdrop, a majority expect economic conditions in Russia to deteriorate further in 2026, particularly if the war continues and sanctions are tightened.
At the same time, nearly half of respondents said they believed sanctions were harming Germany more than Russia, a view Schepp used to criticise European policymakers. He argued that politicians in Berlin and other European capitals underestimate the resilience of the Russian economy and base their decisions on flawed assumptions.
Assets, legal barriers and “grey schemes”
According to the German-Russian Chamber of Foreign Trade, around 2,000 German companies are still present in Russia, with combined assets exceeding €100bn. Schepp noted that these assets have even grown, partly because Russian legislation restricts the large-scale repatriation of profits, effectively forcing reinvestment inside the country.
Many companies cite legal and contractual barriers to exiting Russia, as well as the risk of asset seizure, as reasons for staying. Others have been accused of using indirect arrangements, formally announcing their exit while continuing to supply the Russian market through subsidiaries or partner companies. Approaches among Western governments vary widely, with only a limited number of EU states applying sustained pressure on national firms to leave Russia.
Broader implications for Western policy
The continued presence of Western companies in Russia has become a sensitive political issue, as it effectively provides economic support to a state waging an aggressive war and undermining Europe’s security architecture. Critics argue that coordinated pressure from Western governments on their own companies would be consistent with the logic of existing sanctions imposed by the EU, the UK, Norway and other partners.
The debate highlights the limits of sanctions without a parallel corporate exit, and underscores how prolonged conflict exposes democracies to economic self-interest and uneven political resolve. The extent to which Western businesses ultimately disengage from Russia will remain a key test of unity and credibility in the broader response to Moscow’s war.
