According to recent reports, after the Russian president, Vladimir V. Putin ordered the invasion of Ukraine on 24h February, several multinational companies have been seen examining their ties with Russia. Various market leaders like PepsiCo, McDonald’s as well as Shell, had built a strong and healthy relationship with the country over the decades and were actually faced with untangling complicated deals.
Having said that, under the pressure from consumers as well as investors, a lot of western companies have been known to unwind their investments, pause sales as well as close stores in Russia. However, some, after at first taking contemporary measures, have revised their so-called plans and decided to exit the said country entirely. While some others that have begun with the process of withdrawing from Russia have actually managed to reveal the financial cost to their businesses.
All in all, since Russia went to war with Ukraine, more than 100 companies from all around the globe and nearly every industry have severed their business relationships with the country or scaled them back in significant ways.
Whether required by sanctions or just simply a matter of choice, their actions include cutting ties with Russian Clients, suspending operations in Russia, shutting down online or in-person sales to Russian consumers as well as freezing financial transactions.
Below mentioned is a list of a few of the companies out of the entire pool that has severed their business ties with Russia, with various newer ones joining in with each passing day!
Companies that have stopped their operations in Russia!
The global tech giant has paused the sale of iPhones as well as all other products in Russia and is said to stop exporting into the country in response to the invasion of Ukraine, the company announced in March this year saying, “We are deeply concerned about the Russian invasion of Ukraine and stand with all of the people who are suffering as a result of the violence,” Also, this particular decision of one of the leading tech brands in the world would surely put pressure on other smartphone makers to do the same.
As per recent reports, energy giant Shell is said to be withdrawing from Russia and will stop purchasing Moscow’s oil and gas. The firm announced that it will halt all purchases of Russian oil and gas, while also closing other operations in the country. Not just that, this includes quitting its joint venture with Gazprom too, the Russian natural gas giant. Moreover, in an update to the shareholders, the company stated that this decision would cost them somewhere around 4-5 billion dollars in the first quarter alone.
The global fast-food giant recently said in a statement that it is planning on selling its Russian Business to a local licensee which indeed includes somewhere around 850 restaurants, as it began a full exit from the said country, resulting in a write-off somewhere around 1.2-1.4 billion dollars. The company said in March that it would be temporarily closing its 850 locations and halting operations in Russia.
Airbnb, as you may already know is an American company that is known to operate an online marketplace for lodging primarily homestays for vacation rentals as well as tourism activities. Just recently, Airbnb has joined the list of companies that have pulled out of Russia and has suspended all its operations in Russia and Belarus, which means that no new reservations would be made and the calendars have been blocked for these places.
Just like several others, Google has also suspended its services in Russia amid the war. Google has also informed Android developers in March that Play Store users would no longer be able to purchase games, applications, and, subscriptions as well as IAPs. Moreover, Google has also confirmed that Russians are having problems In accessing the news aggregator service, Google News in the said country. Apart from this, several other services like Google Maps and other services have also been withdrawn.
Joining the list, we have Bloomberg which too suspended its operations in Belarus as well as Russia, thus cutting off the countries from all the products and services that the platform offers including its popular electronic trading platforms. This move was recognized after the company pulled journalists out of Russia this last month.
The popular online streaming platform has been known to have suspended its services in Russia to protest the country’s full-scale invasion of Ukraine. Moreover, Netflix also announced recently that it would pause all its future projects as well as acquisitions from Russia, thus joining a growing list of companies that have been able to cut ties with the said country. Know that, the company took this decision knowing that they had about a million subscribers in Russia itself!
The world’s largest coffeehouse chain too announced that it would soon be closing its 130 stores in Russia, where it is known to have somewhere about 2,000 employees. The exit followed an announcement in March that it was pausing all its store operations. Know that its locations in Russia are owned and operated by the Kuwaiti Conglomerate Alshaya Group.
One of the leading global payment and technology companies around the world has also decided to suspend all its operations in Russia. Not just that, it will prevent cards being issued by Russian banks from working in other countries and would also block people with cards issued elsewhere from buying goods and services from companies in Russia.
10. American Express:
The American multinational corporation specializing specifically in payment card services has also joined the long list of companies exiting Russia amid the Ukraine war and has been known to have suspended all its operations in the country, which surely might be troublesome for the people. As a result, now American Express would no longer work at merchants or ATMs in Russia.
The world’s largest food and beverage company having more than 2000 brands ranging from global icons to local favorites has suspended sales of ‘the vast majority of its pre-war volume of products in Russia, including the coffee, pet food, candy sold under KitKat as well as Nesquik brands. In addition to this, the company has also halted ‘non-essential’ imports and exports into and definitely out of Russia, alongside advertising and capital investment of course.
Being said as the world’s third-largest brewer, Carlsberg has also halted investments and would stop selling its flagship beer brand in Russia before eventually announcing a full divestment from the said country, thus resulting in a charge of somewhere around 1.4 billion dollars. Moreover, the company’s Baltika Breweries unit, based out of St. Petersburg, is said to be Russia’s market leader.
Visa is simply a company that Is known to facilitate electronic fund transfers throughout the world, most commonly with the help of Visa-branded debit and credit cards. As per reports, Visa is said to cease all its transactions within Russia, saying in a statement, “this war and the ongoing threat to peace and stability demand we respond in line with our values.”
On March 3, the company announced that it would also be suspending all the major operations at all its stores in Russia, thus joining several other western brands that did so in the wake of Moscow’s invasion of Ukraine. For reference, Nike has roughly around 100 stores in the Russian Federation, so it surely would be a huge loss!
Unilever for some of you who don’t know is a British multinational consumer goods company based out in the United Kingdom. It is one such company that is focused on meeting the everyday needs of the people, be it hygiene, nutrition, or even personal care with brands that help people feel good, look good and get more out of life, as they claim! In March this year, Unilever decided to stop Russia’s exports but maintain the essential food supply. Not just that, Unilever has also halted investments in the country and will stop advertising and media suspension.
Reading so far, I hope you must have gotten a fair insight into some of the companies that have suspended their operations in Russia with respect to the Ukraine war and I believe by now, you would have been able to figure out and make up your mind as to whether or not it was the right thing for these companies to do. Also, keep in mind that, these are just a few top companies out of an entire pool of such firms from various industries that have done the exact same thing!
In conclusion, what are your thoughts on the list of companies that have stopped operations in Russia? Do let us know in the comments area below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!
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