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This paper discusses the impact of political factors on MNEs’ strategic choices to divest their foreign operations with a focus on Russian MNEs. The rising anti-globalization sentiments forced many firms to rethink their global strategy. We argue that Russian MNEs operating in countries that did not join the economic sanctions against Russia may be less inclined to divest their subsidiaries than those in countries that supported sanctions. We also suggest that Russian MNEs, located in a host country with similar institutions and political stability as Russia would be less likely to divest. We contribute to the divestment literature by emphasizing the political dimension of the foreign market exit.

Political drivers of international divestments of Russian MNEs