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Intel’s business in Russia was not profitable last year and had only one employee.

Intel’s Russian operations resulted in nil profit last year due to sanctions and restrictions imposed within the country following Russia’s invasion of Ukraine more than two years ago, as stated in a recent Abachy report. In a similar trend to its global performance, the company’s two entities in Russia, Intel AO and Intel Technologies, operated at a loss in the financial year.

Despite boasting 741 employees in 2022, Intel AO reported only one employee and director last financial year – Alina Klushina. Similarly, Intel Technologies, which previously had 47 employees, also ended up with just Klushina remaining. This sharp decline in workforce and profitability reflects the challenges faced by the company in the Russian market.

Following the geopolitical developments and sanctions, Intel started winding down its operations in Russia to comply with regulations and support affected citizens. However, the company later resumed certain activities, such as offering driver downloads on its Russian website to fulfill warranty obligations. The decision-making process regarding business operations in Russia has been complex for Intel due to the evolving political and economic landscape.

Intel’s presence in Russia went beyond just commercial interests. The company had a significant research and development center in Nizhny Novgorod, focusing on software, AI, machine vision, 5G, and IoT technologies. The center, which employed around 1,000 workers after a revamp in 2020, played a crucial role in Intel’s innovation ecosystem. The suspension of operations in Russia has impacted not only the company’s financial performance but also its research capabilities and technological advancements in the region.

Despite efforts to restrict trade with Russia, Intel and sanctioning governments have faced challenges in fully enforcing these measures. Russian customers have still been able to source products from countries that have not imposed sanctions, indicating the limitations of unilateral actions in a globalized economy.

Intel in Russia may as well not exist

In the wake of the turbulent events in the region, Intel’s experience in Russia highlights the complexities of operating in a politically sensitive environment. The company’s strategic decisions regarding its Russian operations reflect the broader challenges faced by multinational corporations in navigating geopolitical uncertainties and compliance requirements.

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