Anger over Russia’s brutal invasion of Ukraine has prompted foreign companies to radically rethink their business relationship with the country.
In the week after the start of the Russian offensive, several companies have already announced plans to leave the country, while others are reviewing their business relationships and business there.
The exodus comes as Western sanctions target Russian banks and the country’s access to the international payment system Swift has caused huge losses to the record-high ruble.
In response, Russia announced on Tuesday (03.01.2022) a temporary ban on foreign investors selling Russian assets. “In the current sanctions situation, foreign businessmen are forced to be guided, not by economic factors, but to make decisions under political pressure,” said Russian Prime Minister Mikhail Mishustin.
However, no details have yet been provided about how the ban will work in practice and who exactly it will affect.
Here we look at some of the most important announcements companies have made regarding Russia so far.
The oil giants are on the move
The energy sector is by far the largest in Russia, and the biggest announcements so far are about it.
BPBritain’s largest oil company, announced last weekend that it will give up its 19.75% stake in Rosneft, the Russian state-owned energy giant. This stake makes BP the largest foreign investor in Russia, and its disposal could write off $25 billion.
A day after BP announced, sigh It also confirmed that it would abandon its operations in Russia. Shell’s decision means it will withdraw its 27.5 percent stake in the Sakhalin 2 LNG plant, which is 50 percent owned by Gazprom. Shell is the world’s largest LNG trader.
Another European power company, EquinorHe said, with the support of the Norwegian state, on Monday (28.02.2022) that he will begin the process of winding up his joint projects in Russia. The company has been operating in Russia for more than 30 years and works closely with Rosneft.
Tuesday (1.03.2022), ExxonMobil It announced that it would abandon the Russian oil and gas companies, which are worth about four thousand million dollars. total energies From France, it says it will no longer provide funds for new Russian projects, but will remain active in the country.
Famous American brands cut ties
In his State of the Union address on Tuesday evening, US President Joe Biden confirmed that the United States will join the European Union and Canada in banning Russian flights in their airspace, which will further affect the country’s aviation sector.
Boeing It said it would suspend major operations in Russia, including spare parts, maintenance and technical support for the country’s airlines. Boeing’s decision came as several famous US brands announced some form of withdrawal from Russia on Tuesday. manzana It announced that it has suspended sales of its physical products in the country, including iPhones. It also disabled traffic and live events on the Maps app “as a precaution and safety measure for Ukrainian citizens”.
Famous brands such as Apple are leaving Russia.
Google Removed Russian state news and publishers from their news feeds, while Facebook’s father, goalIt says it will limit access to Russian state media so they appear less prominently in news sources.
Microsoft It announced that it will remove the mobile apps of the Russian state media company RT from the Windows App Store. Snap, the company behind the messaging app snap chatstopped showing ads in Russia, Belarus and Ukraine.
In the meantime, keep up with the financial sanctions imposed by US governments and credit card companies. visa And the Master Card Credit Card They have banned many Russian financial institutions from their global networks.
Some legal, accounting and advisory firms are also reviewing Russian operations but have faced criticism for not withdrawing from the country.
KPMG It said it would terminate some relationships with clients in order to “comply with all new laws.” McKinsey He made it clear that he would no longer work with any agency of the Russian government, but that he would not leave the country.
Automakers suspend exports
Several automakers have also joined the action against Russia. stronghold It is suspending its joint venture with truck manufacturer JV. This ad follows the movements general motors And the Daimler Truck Germany, to cancel operations in Russia. GM Car exports to Russia canceled, the following volvo, Sweden, which was the first international car manufacturer to suspend exports to the country.
German BMW Canceled exports and will stop production in Russia, while Volkswagen It announced the suspension of deliveries of cars already located in Russia to local dealers.
BMW has canceled exports to Russia and will stop production in that country.
Hollywood is moving forward. football too
Many entertainment companies are also cutting off their activities in Russia. Hollywood studios DisneyAnd the Warner Bros. And the Sony Pictures They have suspended the release of upcoming films scheduled for release this month.
on your side, Netflix It says it will not abide by new Russian rules to broadcast 20 state-backed channels on its platform in that country. Netflix’s new regulation in Russia was set to go into effect on March 1, when the online streaming platform would come under the umbrella of Russian telecom regulator Roskomnadzor, forcing it to stream state-backed streams in the process.
Business relations in football are also being reviewed. German Bundesliga club Schalke 04 It scrapped its long-term sponsorship deal with Gazprom, as did European football’s governing body, UEFA.
Meanwhile, the clothes maker Adidas He canceled his commercial agreement with the Russian Football Association.
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