Following President Trump’s almost two-hour phone call with Russian President Vladimir Putin earlier this month, the White House was upbeat about the conversation.

One topic discussed was the prospect of American companies striking “deals” in Russia. There is some speculation that, as soon as the fighting stops, the U.S. will lift sanctions and companies can return to Russia to take up where they left off.

Is American business ready for a reset? After the collapse of the Soviet Union, Western businesses were eager to enter the Russian market. Energy companies sought access to oil and gas reserves and consumer goods companies were keen to satisfy pent-up demand for quality imported products.

The ruble crisis of 1998 and the 2008-09 financial crisis failed to dampen investors’ enthusiasm, and Russia’s invasion of Georgia in 2008 was scarcely a bump in the road for business.

The Obama administration launched a “reset” of relations in 2009. That ended with the seizure of Crimea in 2014. Afterward, some companies did leave, but for the most part business stayed.

However, the full-scale invasion of Ukraine in 2022 changed everything. Sanctions, reputational risk and moral indignation led to the exodus of more than 1000 Western companies.

As president of the U.S.-Russia Business Council during the Obama administration’s reset period, I advocated for U.S. companies doing business in Russia. With the benefit of hindsight, I can answer the question I posed earlier: American companies should regard any reset in U.S.-Russia economic relations with skepticism, at least for as long as the Putin regime remains in power.

While it was never an easy place for American companies to operate, Russia has gotten even worse since Putin launched the invasion.

From 2022 to 2023, Russia’s rating in Transparency International’s Corruption Perceptions Index dropped and is now at an abysmal

© The Hill