Russia without Hollywood, iPhones, McDonald's: Vladimir Putin just doesn’t care
2 min read . Updated: 30 May 2022, 05:22 PM IST
PremiumPresident Vladimir Putin has remarked that he is relieved that several foreign firms departed Russia. Around 1,000 international corporations have reduced or sold off at least some, if not all, of their operations in Russia as a result of the sanctions.
Most major Hollywood studios have pulled out of Russia due to Vladimir Putin's invasion of Ukraine. According to a Russian cinema owner, almost all cinemas in Russia may close by the end of the year after major Hollywood studios cease their licences in the country. According to Pichugin, Hollywood blockbusters accounted for almost 80% of Russian cinema's earnings. Russian cinemas started to show Soviet and old foreign films instead of the newly released ones in an attempt to save the business, which was already significantly hit by the COVID-19 pandemic. There are speculations that Bollywood may replace Hollywood in Russia.
Prior to Hollywood's departure, the Russian company Mosfilm-Master was dubbing roughly ten international films per month, largely in English. Mosfilm-Master is now looking for translators from Korean and Mandarin, notwithstanding Belin's belief that "Asian films do not work for Russians" due to cultural differences.
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It was difficult to envision life in Russia without McDonald's, IKEA furniture, or iPhones. The vast bulk of the country's non-food commodities were supplied by international firms, which also supported about two million jobs.
As a result of the sanctions, around 1,000 international companies have restricted or sold off at least some, if not all, of their operations in Russia in March-May. As many as 600,000 people may lose their jobs as a result of this.
The social aid provided by foreign corporations is superior to that provided by Russian companies. Medical insurance, supplemental payments, bonuses, gifts for children, sports compensation, online services, and books are all rare or non-existent in Russian businesses. In addition, salaries at foreign companies were frequently significantly greater.
In the aftermath of the Ukraine conflict, Starbucks and McDonald's have stated that they will cease operations in Russia. Both companies, however, have committed to continue supporting their employees who will be directly impacted by their business closures.
Russian President Vladimir Putin, however, stated earlier that he was glad some foreign companies had left Russia because home-grown businesses could take their place. He warned the West that Moscow would still find ways to acquire advanced technology and luxury goods.
In the aftermath of Vladimir Putin's invasion of Ukraine, Russia is pushing a new law that would allow it to seize ownership of the local enterprises of western companies who chose to leave, boosting the stakes for multinationals attempting to depart. The rule, which may be in effect in a matter of weeks, will give Russia broad powers to interfere if local employment or industry are threatened, making it more difficult for western firms to break free quickly unless they are willing to pay a significant financial price.
Since the 1990s, foreign companies have actively settled in Russia. In addition to a large consumer market, they have enjoyed comparatively low taxes and a cheap, relatively skilled labour force that was not prone to mobilisation or strikes.
(With agency inputs)
