Russian legal entities of Intel - "Intel AO" and "Intel Technologies," reported zero revenue for the fiscal year 2023, as per their financial statements. While both companies operated at a loss, there was a decrease in net losses compared to the previous year: "Intel AO" saw a reduction of 92.1% to USD2.08 million, and "Intel Technologies" decreased by 96.7% to USD0.23 million.
In comparison, Intel Corporation's overall revenue for 2023 decreased by 14% compared to the previous year to USD54.2 billion while the profit decreased fivefold to USD1.7 billion.
In 2023, the average employee count in both Russian entities of Intel equated to one individual. Each company listed only Alina Klushina as the director. In 2022, "Intel AO" had 741 employees, but by the year's end, only one employee remained, while "Intel Technologies" had an average of 47 employees but also concluded with a singular employee.
Intel made its debut in the Russian market back in 1991. The Nizhny Novgorod research and development center opened in 2000, showcasing continuous progress with the establishment of a new R&D office in 2020. Renowned for innovation in software, artificial intelligence, machine vision, 5G mobile communication, and the Internet of Things, this unit employed over 1,000 individuals at the time.
"Intel AO" focused on information processing, software development, and testing of software products, in addition to offering rental services. Meanwhile, "Intel Technologies" provided marketing services, technical support, and consultancy for Intel product users. Notably, in 2021, these companies reported revenues of 5.7 billion and 1.3 billion rubles, respectively.
In spring 2022, following the onset of military actions in Ukraine, Intel paused its activities in Russia to support 1,200 local employees. The company's operations were further impacted by US and other countries' sanctions restricting high-tech exports to Russia, leading to restricted access to their website for Russian clients and users. Although Intel restored Russian user access to driver downloads on their website in January last year, it required a specific search engine query to access the section. This decision was justified by the company's commitment to fulfilling warranty obligations.
Partner and head of "Russian Assessment," Alexander Ivanov, shared insights from their experience working with companies where shareholders are from "hostile countries," suggesting typical approaches involving contract terminations, activity freezes, local management transfers, or complete divestment. Ivanov noted Intel's early announcement of operational suspension in Russia in 2022, yet the subsequent sanctions pose challenges for parent companies operating with Russian subsidiaries. His assessment leans towards a scenario of operational suspension that is self-sustainable.
According to Alexey Zamesov, Head of Special Projects at RU-CENTER, Intel's continued maintenance of certain expenses, notably rentals, signals anticipation of favorable political developments and leaves the question of continued losses in Russia for 2024 unanswered.
