How to Keep Control of Your Business in Russia Amidst Market Exits and Legal Changes

Many international companies, forced by political and economic instability, have paused or completely halted their operations in Russia. While the decision to leave the market was difficult but necessary for many, the bigger challenge may come when you try to return. The trademarks, contracts, and intellectual property that you've worked hard to establish could be at risk. If you’re not careful, Russian law may strip away your rights, and you could lose control over your brand and assets.

Trademark Loss — A Real Threat

Under Russian law, if a trademark is not used within the country for three consecutive years, it can be canceled. Competitors are legally able to challenge your rights to the trademark and take it over. Global brands that have exited Russia are already facing this risk, and companies that fail to protect their assets may lose a significant portion of their business in this market.

What You Could Face

Companies that have temporarily paused operations in Russia must remember that Russian law works against those who plan to return in several years. You must act now to avoid losing your rights and protect your assets. So, what can you do?

Strategies for Protecting Your Business

1. Maintain minimal brand activity. Even if you’ve left the market, it’s crucial to ensure your trademarks are still in use. Online sales, licensing agreements, or even limited advertising campaigns can help keep your rights active.
2. Review contracts with Russian partners. Make sure your agreements include arbitration clauses and protective terms, ensuring that your assets remain safe despite uncertainty.
3. Monitor legislative changes. Regularly track legal developments in Russia to avoid any surprises and ensure that your business is always legally protected.

Why This Matters

For international companies that plan to return to the Russian market in a few years, losing control over your brand or assets could be a major setback. Competitors can register your brand under their name, and recovering it may become a costly and lengthy process.

Conclusion

Even if your company has left the Russian market, that doesn’t mean you should lose sight of your assets. Now more than ever, it’s crucial to act proactively and protect your rights. Legal support and strategic planning will not only help you retain your assets but also avoid significant losses.

Keep control of your business, even if you’ve temporarily exited the market — start preparing for your return now!

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