Highlights

• Imperial Brands, Rio Tinto, BP, Centrica, Shell Plc, and many other major companies may have suspended their operations in Russia in an act of solidarity against the crisis.
• Russian businesses, Evraz, Polymental and Petropavlovsk, were asked to reassure investors about their positions in London.

The ongoing invasion of Ukraine by Russia has forced many companies to halt their operations in Russia due tougher sanctions from the Western countries, making trading and operations difficult.

Prominent companies, such as Imperial Brands, Rio Tinto, BP, Centrica, Shell, and others have suspended their operations in Russia in an act of solidarity against Vladimir Putin’s war on Ukraine, but there are still many companies operating in the country.

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Russian banks have been banned from the SWIFT international payment system and card network companies including MasterCard, American Express, and Visa have also suspended their operations in Russia making it difficult to trade and make payments. Further, the assets of Russian oligarchs are being seized and shares of the major Russian companies have been suspended from the major indices.

Also read: Rio Tinto, Imperial Brands: Top 8 firms that halted businesses in Russia

After pressure from Government and consumers, Coca-Cola, McDonald’s, KFC, Starbucks, and Universal Music have recently suspended their operations in Russia. Russian businesses, Evraz, Polymental, and Petropavlovsk, were asked to reassure investors about their positions in London. In their statements, the businesses reassured investors that they were unaffected by sanctions and their operations were continuing as normal. However, the war has made sourcing supplies difficult, and they are addressing issue. 

A research team from Yale University have recently published a list of major firms who have suspended their operations with Russia and firms that have still operating in Russia. The research stated that over 300 companies have cut their ties with the country, but around 40 are still operating in the country. Some prominent names are Nestle, Hilton, Bridgestone Tire, Mars, Uniqlo, Burger King, Whirlpool, Citi, Caterpillar, Whirlpool, Intercontinental Hotels, Marriott, Papa John’s and Otis Worldwide.

Let us look at 4 FTSE-listed stocks that are still operating in Russia.

British American Tobacco Plc (LON: BATS)

The London-based manufacturer and seller of cigarettes, tobacco and other nicotine products has revealed that it will continue to sell cigarettes in Russia as it is one of the key growth markets for cigarettes and heated tobacco but will suspend capital investment and marketing spending activities.

The market cap of the FTSE 100-listed company stood at £70,112.30 million as of 10 March 2022. The company’s shares since the start of this year have given a return of 12.33%.

British American Tobacco Plc’s shares were trading at GBX 3,071.50, up by 0.29%, at 8:20 AM (GMT), on 10 March 2022.

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Unilever Plc (LON: ULVR)

The multinational consumer goods company, which is famous for brands like Dove soap and Hellmann’s mayonnaise, has suspended trading with Russia and will stop all marketing spending but will continues to provide everyday essential food and hygiene products in Russia that are manufactured locally.

The market cap of the FTSE 100-listed company stood at £88,000.49 million as of 10 March 2022. The company’s shares since the start of this year have given a return of -15.56%.

Unilever Plc’s shares were trading at GBX 3,383.50, down by 1.47%, at 8:20 AM (GMT), on 10 March 2022.

Intercontinental Hotels Group Plc (LON: IHG)

Intercontinental Hotels Group is continuing business in Russia, where its 26 locations are open. The UK-based multinational hospitality company that currently operates across 100 countries has said that it was closing its corporate office in Russia and will suspend future investments and development activities and new hotel opening in the country.

However, the company still has long-term management or franchise agreement with independent third-party Russian companies.

The market cap of the FTSE 100-listed company stood at £8,935.83 million as of 10 March 2022. The company’s shares since the start of this year have given a return of 0.02%.

Intercontinental Hotels Group Plc’s shares were trading at GBX 4,807.00, down by 1.01%, at 8:20 AM (GMT), on 10 March 2022.

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Reckitt Benckiser Group Plc (LON: RKT)

The British multinational consumer goods company, which produces health, hygiene, and nutrition products, has criticised Russia’s assault on Ukraine but has decided to continue with its operations in Russia, which makes about £400 million annually.

The market cap of the FTSE 100-listed company stood at £41,910.45 million as of 10 March 2022. The company’s shares since the start of this year have given a return of -8.53%.

Reckitt Benckiser Group Plc’s shares were trading at GBX 5,805.00, down by 0.99%, at 8:20 AM, on 10 March 2022.

Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.