93% large Finnish firms believe Russian market will stay closed: survey

A clear majority of Finnish large companies believe that the Russian market will stay closed in the future, according to a survey conducted by OP Financial Group.

More than three quarters of big companies view closer NATO ties as an opportunity, and 86 per cent believe that membership will make Finland more attractive to investors, said OP in a press release on Thursday, quoting the survey.

OP’s Survey of Large Corporations shows that 77 per cent of Finnish large companies view a closer relationship with NATO as a business opportunity. Just over a fifth have a neutral stance on NATO membership, viewing it as neither a threat nor an opportunity.

”Large Finnish enterprises have a clear standpoint on Nato membership and its impacts: Nato will bring stability and security, reducing Finland’s country risk. Almost nine out of ten responding companies believe that closer Nato ties will make Finland a more attractive destination for inward investment,” said Katja Keitaanniemi, CEO of OP Corporate Bank.

Russia’s attack on Ukraine has created difficulties for large corporations, such as supply chain problems and the energy crisis. Of the respondents, 70 per cent say that Russia’s war of aggression will have a long-term negative impact on their supply chains. A return to Russian markets is thought unlikely.

”More than 90 per cent of large companies expect the Russian market to stay closed in the future. They view Russia as high risk for potential investors and partners, and see no change for the better in the near term,” Katja added.

Finnish large companies view their winding down of production in Russia as fairly permanent. About 45 per cent of survey respondents with production facilities in Russia say they have reduced manufacturing there for at least a decade, while 41 per cent state that they have done so permanently.

”They see Finland, Estonia and other European locations, in particular, as substitute production sites. This relocation could bring new business opportunities to Finnish companies as well,” Keitaanniemi said.

The results are based on OP’s annual Survey of Large Corporations, which measures large Finnish corporation executives’ views on business and economic developments.

A total of 199 people from 139 large corporations based or operating in Finland responded to the survey, particularly CEOs, CFOs and executive vice presidents. The data was collected in autumn 2022 and the survey results will be published in full on 11 January 2023. OP carried out the Survey of Large Corporations in partnership with the Nordic Institute of Business and Society (NIBS) think tank founded by Aalto University professors.