Mayor Sergei Sobyanin said in a blog post Monday that 200,000 people are at risk of losing their jobs. Authorities have set aside 3.36 billion rubles ($ 41 million) to support them, he added.
Dozens of Western companies have left Russia or halted operations in the country after President Vladimir Putin ordered the invasion of Ukraine in late February. The business was sold, the offices were closed, and the production of everything from beer to cars was stopped. Dozens of them, including McDonald’s (MCD) – which employs 62,000 people in the country – have vowed to keep paying their workers, at least for a limited time.
The Swedish Ingka Group, owner of the IKEA retailer, has 15,000 employees in Russia. A company spokesman told CNN Business last month that it had guaranteed a three-month salary to its workers.
However, it is not clear how long companies can maintain support. Sobyanin said the Russian government was intervening to help abandoned workers.
“IN [support] The program is aimed at employees of foreign companies who have temporarily suspended their activities or decided to leave Russia, “he said.
According to the mayor, the support plan includes training, employment in temporary and public works, as well as incentives for organizations and companies to hire workers whose companies have left.
Western sanctions have spurred Russia’s economy and pushed the country to the brink of its first foreign debt bankruptcy in more than a century. Inflation has risen and economists predict a deep recession. Lack of access to about half of its foreign exchange reserves – now frozen under sanctions – Russia has tried to pay in rubles, not in dollars provided for in the contracts, on two bonds maturing in early April, credit This was announced on Friday rating agency Moody’s. Russia has until May 4th to meet its obligations, otherwise it could be considered a default, the agency said. S&P has already called on Russia to “selectively default” on these bonds. US Treasury Secretary Janet Yellen last week killed governments and companies that have maintained ties with Russia.
“Let me now say a few words to those countries that are currently sitting on the fence, perhaps seeing an opportunity to win by maintaining relations with Russia and filling the void left by others. Such motivations are short-sighted, “she said in a speech to the Atlantic Council.
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