Photo : The Moscow Times
Photo : The Moscow Times
Putin open to allow western companies back under condition
By Padmashree Anandhan
WAR ON THE GROUND
On 13 May, the UN International Civil Aviation Organization (ICAO) found that Russia was responsible for the 2014 downing of Malaysia Airlines Flight MH17 over eastern Ukraine, which killed 298 on board. The aircraft was struck by a Russian-made missile while traveling from Amsterdam to Kuala Lumpur over the Donbass region of Ukraine, where Russian-backed separatists were fighting Ukrainian forces. The ruling concluded that Russia violated the Chicago Convention, which prohibits using weapons against civilian aircraft. This landmark decision marks the first time ICAO has resolved a dispute the both.
On 13 May, Ukraine and the US governments agreed on a balanced governance structure for the newly established US-Ukraine Reconstruction Investment Fund. According to Ukraine’s Ministry of Economy, key decisions will require unanimous consent, ensuring joint oversight. The Fund will also feature four committees: Operations Management and Audit Committees with equal representation, a Project Sourcing Committee led by Ukraine, and an Investment Decision Committee with a US majority.
On 13 May, a mandatory evacuation began in Nova Sloboda, a village in the Sumy region's Konotop district, due to Russia’s shelling, which threatened civilians. The order was signed by regional governor Oleh Klymenko, as part of the evacuation efforts across the region. Till now, 52 settlements have been fully evacuated. Local agencies are reportedly providing support for relocation, humanitarian aid, and social services. The region faced nearly 240 Russian attacks.
THE MOSCOW VIEW
Claims by Russia
On 13 May, the Kremlin confirmed preparing for possible direct peace talks with Ukraine in Istanbul. However, it remains unclear whether the negotiations will take place. Kremlin spokesperson Dmitry Peskov stated that Moscow is making arrangements for the talks, tentatively, following President Vladimir Putin’s proposal to resume dialogue aimed at addressing the root causes of the conflict.
On 13 May, Putin stated that Russia is open to allowing some Western companies to return, provided it aligns with the country’s economic interests and that the firms did not act disrespectfully when they exited the market. Addressing Russian business leaders, Putin emphasized a new approach, where firms may be readmitted if their presence benefits Russia, but otherwise, legal justifications—consistent with WTO rules—would be used to block them. Since March, some Western firms have begun re-entering the Russian market, with companies like McDonald’s, Hyundai, LG, and Ariston showing signs of renewed activity through trademark filings or resumed operations. Putin before ordered the government to set strict rules ensuring that returning companies do not destabilize local businesses.
THE WEST VIEW
Responses from the US and Europe
On 13 May, Germany's Social Democratic Party (SPD), now a junior partner in Chancellor Friedrich Merz's coalition, ruled out sending Taurus missiles to Ukraine. This continued requests from Kyiv and Merz's openness to the idea. SPD parliamentary leader Matthias Miersch reaffirmed the party's stance, emphasizing that they don’t want to be a party of war, which underpins their consistent rejection of delivering long-range weapons capable of striking targets in Russia.
On 13 May, Germany’s Chancellor Friedrich Merz warned that the EU would implement tougher sanctions against Russia if it fails to make progress toward peace in Ukraine this week. Greece’s Prime Minister Kyriakos Mitsotakis, Merz emphasized the potential for increased sanctions targeting sectors like energy and finance. Mitsotakis echoed the sentiment, stressing the importance of EU unity and its central role in facilitating a peaceful resolution to the conflict.
On 13 May, Poland’s protesters blocked the Yahodyn-Dorohusk border crossing with Ukraine, echoing the major disruptions seen in the 2023 protests that crippled transport routes. The protests were organized by the Committee for the Defense of Carriers and Transport Employers, aimed at pressuring the Polish government over perceived unfair competition from Ukrainian hauliers benefiting from wartime EU exemptions.