Source: Business Today India
On Friday, June 3, Marriott International Inc. made the announcement about the suspension of all its operations in Russia. Clearly, this is owing to the restrictions placed on the economy of Russia because of its military assault on Ukraine since February this year. The hotel business has been in the country for the past 25 years.
In a statement this week, Marriott stated how it is proving to be increasingly ‘impossible’ for them to continue their business in Russia. This is due to the ‘newly announced’ restrictions placed on the Russian market by the economies of the European Union, United States and United Kingdom.
Since the invasion of Ukraine, Marriott joins the ranks of several companies that have gone ahead to halt their businesses in Russia since February. Moreover, a list from Yale University’s Chief Executive Leadership Institute specifies how these companies include Ikea, FedEx, Disney, and many more. However, the statement from Marriott International does not exactly specify which restrictions or sanctions particular led to its decision to suspend all its businesses.
On March 10, Marriott announced that it would shut down its corporate office in Moscow, pausing the the openings of new hotels in the country. In its statement, it noted how they ‘remain focused’ on taking care of its associates based in Russia as they go ahead to halt their business in Russia.
Sanctions from around the world:
Since the initiation of the invasion, the West has visibly placed a series of sanctions on the Russian economy. This includes the ones that would necessarily cut back on new financial investment in Russia. Particularly, the US went on to sanction Russian President Vladamir Putin, along with Russian banks and oligarchs connected to the Kremlin. Moreover, President Biden even made the announcement about a ban on Russian oil imports to the US in March.
Moreover, the White House recently announced new steps which US Treasury took to sanction more Russian government officials and business leaders. Along with it, luxury asset management and service companies which are essential to ‘Russian attempts to evade sanctions.’
On the other hand, EU announced its official adoption of a package of sanctions banning oil imports from Russia. Essentially, this is the sixth that the EU levied, and is set to phase out Russian crude oil imports over the following six months. Additionally, it will phase out imports of refined petroleum over the coming eight months.
Following its announcement of closing its corporate office, the company stated that it had worked to support its Russian and Ukrainian associates, along with the entire region through the war. It took steps to transfer the employees to Marriott locations in different locations.
Additionally, it provided over $1 million in form of food vouchers, transportation aid, along with medical and legal assistance for its local workers and their families helping them to resettle.
Marriott stated that it contributed to supporting Ukrainian refugees. This was through the provision of housing in 85 of its hotels in the neighbouring countries, along with the donation of $2.7 million to relief organisations. It hired over 250 refugees in more than 40 of its locations.
