Thirty years ago when communism collapsed in the Soviet Union, Western firms jostled to be first through the door. The arrival of brands such as Coca-Cola and McDonald's symbolised the start of a new era, closely followed by retailers, miners, lawyers and advisers. And Russians became eager consumers of Levi jeans and luxury goods. Now, in the wake of President Putin's military aggression in Ukraine, some firms, including Apple, Jaguar Land Rover, H&M and Burberry, have announced they are pausing activities in Russia. Russia was the fifth largest European retail market in 2021, valued at £337.2bn. Some brands may not want to burn their bridges, if there's a chance of returning at some later date. That is why many firms simply say they are "reconsidering" or "suspending" sales rather than withdrawing altogether. And with sanctions limiting forms of payment, restrictions on taking foreign exchange out of the country and huge uncertainty over future prices and consumer appetite, the business climate is extremely challenging making the decision to hit pause easier.
