Since the beginning of the Russian invasion of Ukraine in February 2022, more than 460 global companies have ceased operations in Russia, selling or liquidating their assets. This is the consequence of a survey conducted by the Ukrainian Kiev economical School (KSE). According to a survey of 59 global brands completely left the Russian market.
However, 25 of these companies inactive have registered their trademarks in Russia, learned DW after examining the Rospatent database of the Russian Patent Office. These include Ikea furniture store, fast food McDonald's network, as well as Mercedes-Benz, Jaguar and Volvo car manufacturers.
The remaining 34 companies, including the German maker of consumer goods and glues Henkel and the Finnish energy supplier Fortum, have no longer applied for the usage of their brands in Russia since February 2022. any companies, specified as Unilever and British American Tobacco, have transferred trademark rights to any of their products to their erstwhile Russian subsidiaries. Technically, they have nothing to do with them anymore.
Western companies return, “West companies follow Ariston and come to Russia”, “State pride advocates the return of Western companies” - Russian press has been full of specified headlines in fresh weeks. As evidence, the media referred to Rospatent's website, according to which companies specified as McDonald's or KFC, which had previously announced their complete withdrawal from Russia, applied for fresh trademarks or extended existing trademark rights.
Ikea was besides the focus of attention. The Swedish company explicitly condemned Russia's extended invasion of Ukraine and sold its operations. In 2024, Ikea yet left the Russian Federation and sold her last magazine in the Moscow region, where she began her presence in Russia in 2003. According to the Rospatent Ikea database, she submitted at least 4 applications for renewal of the registration of her trademarks until February 2022, 1 of which is inactive under consideration.
Who gave up their brand?
The another companies in the KSE list have no longer submitted any applications or withdrew them, as did Henkel. The German maker of detergents and adhesives stopped the process of renewing his trademark rights in 2022 and the erstwhile registration expires at the end of that year.
The trademark certificate is valid for a full of 10 years, and many companies that applied before February 2022 inactive have any time.
The German OBI construction marketplace network applied for registration of the trademark back in 2021, but it was not approved until late 2022. The company's intellectual property will so stay theoretically protected for many years.
However, there may be exceptions. Under Russian law, a competitor may competition in court the right to a trade mark remaining ‘without the proprietor’ if it has not been utilized for 3 years. In March of that year, the Russian air conditioning maker Rusclic managed to invalidate the registration of the Swedish trademark by the court of Ericsson.
Why companies defend their brands
Russian economist and writer Jan Mielkumov sees the renewal of trademark rights primarily as a formal procedure. The application indicates that the company in Russia does not want to part with its trademark. Companies are trying to prevent individual else from utilizing their trademarks. They do not want to spend money on lawyers or go through a fresh registration process - explained DW.
According to Mielec, if companies have agreed to repurchase their assets in Russia, they can besides recover their brands. However, if they have already been sold by the buyer, the redemption may take years.
At the same time, Mielec stresses that only a fewer large companies would decide to return to Russia due to the unstable political situation and advanced risk. For them it is simply a substance of strategical planning. If the political situation changes in 5 or 10 years, it will be easier for them to return to their presence, says Miłkumov.
According to him, the return to the Russian marketplace depends to a lesser degree on the will of companies, and more on the political situation in Russia. Even under favorable conditions, it won't be like the '90s. There will not be as much enthusiasm and trust in Russia as then - people will be careful - says Miłkumov.
McDonald's and Coca-Cola's announcements besides indicate caution. The Ukrainian B4Ukraine organization, which campaigned for Russia's isolation, asked many companies about their plans on the Russian market. 2 American companies explained their position in letters published by B4Ukraine.
McDonald's stated that the reasons that led the company to retreat from Russia in 2022 "still apply". Coca-Cola wrote that "there are inactive sanctions and another legal obstacles that affect any considerations regarding the return to the Russian market".
The Chinese replace Western companies
The Russian authorities have developed any criteria for companies returning to Russia. According to the RBC website, abroad companies may be required to warrant local production, technology transfer and the creation of joint ventures with Russian shareholders.
For now, however, all this is only on paper, and the real beneficiaries of the current situation are companies from China, India and the mediate East. They actively take the place of Western competitors - emphasizes Jan Mielkumov. According to a survey conducted by the consulting company Nikolaers, for example 27 clothing and footwear brands from these countries have already taken place 32 western companies that have left the Russian market.
