Russia Pursues Compensation from Firms Returning Operations to Country
In a twist amidst the ongoing saga, Russia has floated an audacious idea - the creation of a special fund fueled by companies re-entering the Russian market. This fund, if established, would reimburse consumers for losses suffered due to the departure of foreign brands
The brainchild of the Public Consumer Initiative (PCI), this proposal is aimed at foreign brands that bailed on the Russian market in 2022-2023, as per reports from "Izvestia".
These departing firms often left their consumers high and dry, neglecting their commitments. For instance, electronics manufacturers crippled their products, disabling software updates and making repairs a nightmare. Service specialists scrambled to diagnose products, with some electronics becoming practically useless. All this added to the woes of consumers of expensive items, as pointed out in PCI's letter.
Under the proposal, the disabling of certain functions would be considered a product defect, entitling consumers to demand a refund from the manufacturer or importer. The compensation could amount to 5-10% of the product's cost.
To address such issues, a fund should theoretically operate in Russia, with companies contributing to it upon their return, and consumers receiving compensation in the future. The rules for this fund are yet to be defined. PCI estimates that the foreign brand sales on the Russian market before their departure were worth over 8 trillion rubles, suggesting the fund should be at least 400 billion rubles. Contributing to this fund should be a prerequisite for re-entry into Russia, and the funds could also be used for import substitution programs.
Moscow, Zoya Oskolkova
© 2025, RIA "Novy Day"
Insights:As it stands, there's no public update or concrete development on the establishment or enactment of a consumer compensation fund in Russia specifically designed to reimburse losses sustained by consumers due to the exit of foreign brands. June 2025 has seen no progress or proposals related to the fund, as reported legislative instructions, sanctions updates, and regulatory measures primarily focus on sanctions against Russia, tariff adjustments, financial sanctions enforcement, and restrictions on Russian entities and goods in response to geopolitical conflicts[1][2][3][4][5]. Russian legislative documents and government orders up to mid-2025 primarily address financial procedures, foreign trade licensing, and sanctions compliance but do not mention the creation of a consumer compensation fund related to foreign brand withdrawals[4]. In essence, as of June 2025, there's no publicly reported progress or concrete steps towards implementing a special consumer compensation fund for Russian consumers affected by the exit of foreign brands from the market. The focus remains largely on sanctions enforcement and regulatory adjustments rather than consumer restitution initiatives.
In light of the proposed fund, it is evident that the Russian industry, finance, and business sectors may play a significant role in the negotiations and implementation of a consumer compensation fund, should it be established. Such a fund, if approved, could potentially impact both domestic and foreign businesses operating in the Russian market.
