Which companies are pulling out of Russia?

Russia-Ukraine war has now been wreaking havoc for nearly a month, with no peace agreement in sight between both sides. On one side, Russia has upheld its security worries while the Ukrainian forces have firmly refused to give up.

Russia has been invading Ukraine despite the EU’s, USA’s, and UK’s assertion to stop the invasion. Subsequently, some of the world's biggest companies have either abandoned or scaled back their operations in Russia. The ‘Great Business Retreat’, as some are calling it, has seen autos, finance, retail, entertainment, and fast-food industries reacting to the war.

GOOD SECTION: US bans Russian airlines, Aeroflot asked to return leased planes

©2022 Kalkine Media®

Why are companies leaving Russia?

The number of companies leaving Russia is growing every day as the conflict between Russia and Ukraine escalates. The primary reason is the sanctions put by the western allies and the rest of the world against Russia in solidarity with Ukraine.

The USA has the most stringent sanctions, including the suspension of transactions with the Russian central bank. Following these sanctions, companies are leaving because of reputational, political, operational, and financial issues. Thus, several US and European companies have stopped their business in Russia, and many are deciding to leave the country.

Till now, around 400 companies have withdrawn from Russia since its attack on Ukraine. However, around 80 companies have stayed in the country, most of these are consumer and pharmaceuticals based. According to the companies’ officials, if they leave Russia, there can be sufficient impact the Russian population.

ALSO READ: Crypto Catch: WAVES token surges 122% in a week; Russia struggles to skirt sanctions

Source: © Kryzhanivskyi | Megapixl.com

Which companies are pulling out of Russia?

• Ford: Earlier in March, Ford announced to suspend its operations in Russia. The company also shared its empathetic sentiments for Ukrainians working at Ford across the world and said that they are deeply concerned about the situation in Ukraine.
• Boeing: Following suit, Boeing announced to suspend its support to Russian airlines. Their main office in Russia is also closed now, and the company said that they are pausing any kind of technical and maintenance support to Russian airlines.
• Apple: The news of Apple joining the rally of companies leaving Russia has bombarded all news channels. The company announced that it is suspending the selling of its products in Russia. Additionally, Apple services like Apple Pay wouldn’t efficiently function in Russia.
• Facebook and Twitter: After the assertion from the EU, Facebook on February 28 announced to limit the access of Russian news channels across the European Union. Several governments and the EU requested Facebook to suspend the flow of news from any Russian government-owned media outlet. And similarly, Twitter is also reducing the visibility and amplification of such media houses.
• Equinor ASA: Following Russia’s invasion, Equinor ASA, Norway’s biggest energy company announced to withdraw from its joint ventures in Russia.

What are some challenges BRICS countries face amid Russia-Ukraine war?

Other companies who have also decided to withdraw their stakes or suspend their operations in Russia are Accenture, Adidas, Adobe, Netflix, Google, YouTube, Equinor, Shell, Mastercard, Disney, Warner Media, Accenture, Airbnb, Alphabet, Airbus, etc.

MUST-READ: Will industry-wide sanctions be able to cripple the Russian economy?

Bottom line

After the collapse of the Soviet Union in 1991, it was challenging for Russia to bring its economy back on solid feet. However, after three decades of western and other foreign investments, it seems like Russia is once again driving away from economic success. If the Russian invasion escalates in the upcoming weeks, the Russian economy might have to pay a heavy price for the same in the forthcoming years. But time will be the best judge of what’s in store.