2 big companies aren’t rushing to return to Russia

• McDonald's and Coca-Cola have pushed back on talk of returning to the Russian market.
• Their responses follow speculation in Russian media that they were preparing a return to the country.
• Russian officials said the country is prioritizing domestic companies over returning Western firms.

Two of the biggest brands to exit Russia after its invasion of Ukraine do not appear ready to stage a comeback.

President Donald Trump has indicated that the US could reconcile with Russia, which could allow Western companies to reenter the market. That's spurred speculation in Russian media about which companies could come back and under what circumstances.

In March, the Ukrainian advocacy group B4UKraine Coalition contacted several Western countries, including Coca-Cola and McDonald's. In correspondence with the group, executives from both companies indicated they plan to stay out of Russia.

In the group's letter to McDonald's, B4Ukraine Coalition highlighted comments in local media from political analyst Vadim Siprov, who said in mid-February that McDonald's could return by year's end.

McDonald's is sticking to the principles that guided its decision to exit Russia in 2022, the company said in its March response. The organization posted McDonald's letter online.

In 2022, McDonald's evaluated five questions: whether it's legal to operate in the country, whether it has the freedom to run its business, whether its presence is helpful to its brand, whether staying aligns with its values, and whether it makes good business sense.

"The principles behind these questions, which guided our decision to 'de-Arch' a major market and sell our portfolio of McDonald's restaurants, still apply today," wrote Jon Banner, the fast food giant's global chief impact officer.

In 2022, "the answer to each of those questions was no," Banner wrote.

Meanwhile, Coca-Cola said in a late March email reply to the Ukrainian group that "sanction regimes and other legal hurdles" stand in the way of any return to the Russian market.

McDonald's and Coca-Cola did not respond to requests for comment from Business Insider.

'A price to pay for past decisions'

Russia said in February that it is not in a hurry to receive Western companies that had left the country over its war in Ukraine.

"We are not waiting for anyone with open arms. There will be a price to pay for past decisions," Anton Alikhanov, the Russian industry and trade minister, told reporters in February, according to the state news agency TASS.

Three years into the war in Ukraine, nearly 475 foreign companies have left the Russian market completely, per the Leave Russia database from the Kyiv School of Economics. Those that have made a complete exit include McDonald's, Starbucks, Ikea, the British energy giant Shell, and the Japanese tire maker Bridgestone.

Alikhanov also said Russia was prioritizing domestic brands instead of waiting for foreign brands to return.

Analysts have said that businesses are likely to be cautious about returning to the country even if sanctions are lifted.

Russia's wartime economy is facing multiple issues, including high inflation, currency volatility, and sky-high interest rates. Putin's ironclad reign also presents concerns about the rule of law and safety.