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Sanctions adversely affected work of 62% of foreign companies in Russia

The participants in the survey represent all sectors of the economy

MOSCOW, October 21. /TASS/. Anti-Russian sanctions adversely affect the business in Russia for 62% of foreign companies and resulted in market contraction for 44% of them, EY says in its study prepared for the Foreign Investment Advisory Council (FIAC) in Russia with the support of the Russian Ministry of Economic Development.

"Sanctions influenced on the business of foreign investors. 62% of polled companies regard the impact of sanctions on the business as negative. At the same time, 42% of them indicated that restrictive measures did not affect their revenues; the decline in income was insignificant for others," the survey says.

95 foreign companies were polled in July - August 2019, including 53 companies - FIAC members. Participants in the survey represent all sectors of the economy. The companies are working in Russia for 28 years in average.

According to the study, sanctions resulted in contraction of the Russian market for 44% companies. It has become more difficult to finance projects in Russia for 27% of companies. Companies of the agricultural sector faced the greatest challenges.

"Sanctions resulted in disturbance of established supply chains in each forth company. Producers of consumer goods consider themselves as the most suffering - 64%. Sanctions created serious reputational risks for 38% of major companies with annual revenues of $300 mln and more; only 14% among smaller companies are of the same opinion. Sanctions influenced on job cuts for 25% of companies from the agricultural sector," the research says.