Eddy about Chamber of Commerce event in Moscow

On January 27th, i.e. Friday next week, according to the invitation, a “network meeting for Austrian companies with their own presence or business interest as well as their local partner companies” are to take place in the Odintsovo recreation park near Moscow. The organiser, the foreign trade center of the Austrian Federal Economic Chamber (WKO), had invited cross-country skiing under floodlights and a subsequent exchange in a coffee house. The equipment for the Guests should be made available by the sponsor Fischer Sports Russia.

Criticism of the event was not long in coming. NEOS MP Helmut Brandstätter spoke on Twitter of a “shame for Austria”.

The event was finally canceled on Wednesday afternoon. IIn the current case, an information exchange event for companies already located there should not have been combined with a sporting activity, said a spokeswoman for the WKO Wednesday afternoon. “We apologize for the chosen format, which will not take place. The Chamber of Commerce condemns the Russian war of aggression in Ukraine,” said the spokeswoman.

How much Austria is still in Russia?

A study by the Austrian Post Office shows that the majority of Austrian companies continue to do business in Russia despite sanctions Kyiv School of Economics (KSE). Around eleven months after Russia attacked Ukraine,Two thirds of the previously present companies from Austria are still active in Russia.

Of the 64 companies named, only three have left the Russian market since February 24, nine have announced an exit, and 42 want to stay. Domestic companies are therefore much more loyal to Russia than companies from other countries.

The KSE database does not mention the specific reasons that led to the decision of the respective company to continue operating in Russia despite massive political risks. Since the beginning of August, Russian companies in the energy and financial sectors whose owners are associated with “unfriendly states” have only been allowed to change their ownership structures with a decision by President Vladimir Putin.

This particularly affects the Russian Raiffeisenbank, which, according to the KSE database, has the largest number of employees among Austrian companies in Russia with more than 9,000 people. In the first three quarters of 2022, Raiffeisen Bank International (RBI) generated half of its consolidated profit in Russia and at the same time was busy examining “strategic options” for the future of the Russian subsidiary bank.

Despite Austria’s status as an “unfriendly state”, Austrian companies in Russia continue to receive orders: the largest bread combine in Sochi in southern Russia ordered goods from Astner baking agent manufacturer Backaldrin on a larger scale in 2022, whose managing director Wolfgang Mayer acts as honorary consul of the Russian Federation in Upper Austria.