The flow of beer was stopped. Cargo ships stopped calling port, and oil companies shut down their pipelines.
Russia’s invasion in Ukraine has caused some of the most well-known brands around the globe, including Ikea and Disney to suddenly leave a country that’s been a global outcast.
According to Mary Lovely, an economist at the Peterson Institute for International Economics (Washington), “Russia is becoming a commercial pariah.” “Pretty much every company and multinational doesn’t want to get caught on the wrong side U.S. or Western sanctions.”
Car shipment were stopped. The flow of beer was stopped. Cargo ships stopped calling port, and oil companies shut down their pipelines.
Russia’s invasion in Ukraine has caused some of the most well-known brands around the globe, including Ikea and Disney to suddenly leave a country that’s been deemed a global outcast.
According to Mary Lovely, an economist at the Peterson Institute for International Economics (Washington), “Russia is becoming a commercial pariah.” “It is a common occurrence for multinationals and companies to get caught up in the US or Western sanctions.”
Moscow’s order temporarily preventing foreign investors from purchasing Russian assets may complicate companies’ flight. Prime Minister Mikhail Mishustin stated Tuesday that the measure would allow investors to make “a thoughtful decision” and not succumb to political pressures like sanctions. It is not clear how this measure will affect the efforts of corporations to withdraw from Russia.
Below is a list of companies who have cut or reduced ties to Russia. This list will be regularly updated.
Fossil fuels
The energy sector, in which Russia is a major participant, has been exempted from Western sanctions against Russia. The country is the third-largest oil producer in the world and second-largest natural gas producer. Oil and gas companies were among those that made the most dramatic exits, despite being under pressure from climate activists to invest more in renewable energy.
BP
BP, Russia’s largest foreign investor in energy, announced on Sunday that it will sell its almost 20% stake in Rosneft, the state-owned Russian oil and gas company. According to Reuters, the move could have a cost of anywhere from $14 billion to 25 billion.
Equinor
Norway’s largest energy company, Equinor, announced Monday that it would be withdrawing from Russian joint ventures. These joint ventures are valued at approximately $1.2 billion. Equinor, Norway’s largest energy company, announced Monday that it would begin withdrawing from its joint ventures in Russia, valued at $1.2 billion.
Exxon
ExxonMobil announced Wednesday that it would withdraw from Sakhalin-1, a major oil and gas project in Russia, and stop any further investments. ExxonMobil did not give a time frame for the firm’s withdrawal from the project. It operates as part of an international consortium.
“The process of ceasing operations will need to been carefully managed and closely coordinated by the co-venturers to ensure it is executed safe,” the company stated in its announcement. It also said that ExxonMobil supported the Ukrainian people in their struggle to protect their freedom and decide their future. We are deeply disappointed that Russia has taken military action against Ukraine’s territorial integrity and endangered its people.
Shell
Shell announced Monday that it would be leaving the joint venture with Gazprom, the state-owned Gazprom, and ending its participation in Nord Stream 2, a pipeline to transport natural gas from Western Europe. This move could result in the loss of approximately $3 billion in assets.
Cars and planes
The auto- and aviation industry companies also indicated that they are staying away from the Russian market out of concern for Ukraine, or in compliance with Western sanctions.
Boeing, Airbus
Airplane manufacturers Boeing and Airbus have stopped providing parts and support for Russian aircraft. Boeing has temporarily closed its Kyiv branch and suspended major Moscow operations.
According to Reuters, Russian airlines have 62 planes in order with both manufacturers.
Daimler Truck
Germany’s Daimler Truck suspended truck parts deliveries to Kamaz, its Russian partner. It tweeted Monday, “We have decided not to continue our business activities with Russia with immediate effect,”
Ford Motor Company
Ford also announced that it would stop operations in Russia and donate money to Ukrainian refugees. Ford has a small share in a joint venture that Ford and PJSC Sollers. This venture focuses on van manufacturing.
“Given the current situation, we have today advised our JV partners, that we are suspending operations in Russia, effective immediately until further notice,” Ford stated.
The company stated that while we don’t have any significant operations in Ukraine we do have strong contingents of Ukrainian nationals working for Ford around the globe and they will continue to be supported through this time.
Harley-Davidson
Harley-Davidson stopped motorcycle exports to Russia and stated that its thoughts were “continued for the safety of Ukrainian people.” Putin rode a three-wheeled Harley while visiting Ukraine in 2010.
Mercedes-Benz
Mercedes-Benz has stopped exports of cars to Russia and ended its production there on Wednesday. MarketWatch reported that Mercedes-Benz will continue to work with Ukrainian suppliers, who supply some components for its vehicles.
Renault
Renault, one the largest players in Russia’s auto industry, stated that production will be temporarily suspended at its Moscow plant until Saturday due to logistics issues, but didn’t give any more details. It is among the Russian companies that are more established and may find it difficult to navigate the crisis.
Toyota
Toyota has stopped production at its St. Petersburg plant, which makes RAV4 models and Camry models, starting Friday. This is due to supply-chain disruptions. Toyota said it was monitoring events with “great concern for the safety people of Ukraine”
Volkswagen
Volkswagen Group, which owns brands such as Audi, Ducati and Skoda, announced Thursday that it would immediately stop production in two Russian factories as well as exports from Russia. VW stated that the company would pay leave to affected workers in Russia.
Volvo
Volvo Cars of Sweden said that it has stopped deliveries due to “potential risks associated trading material with Russia,” which includes Western sanctions.
Consumer goods
Airbnb
Late Thursday, the online housing service announced that it had stopped all operations in Russia or its close ally Belarus. Airbnb announced earlier this week that its nonprofit arm would offer shelter to up to 100,000 Ukrainians who fled the country because of the invasion.
Budvar
Budvar Czech Brewer, which has Russia as one its five largest markets, stopped beer deliveries to Russia. It stated that business was not its top priority and that it is looking for ways to help including accommodation for Ukrainian refugees.
Carlsberg
Carlsberg, a Danish brewery group based in Copenhagen, has suspended production at two Ukrainian breweries. It said it is “following the situation closely with great concern.” The company did not comment on its vast Russian operations, which include Baltika Breweries in St. Petersburg, which exports beer around the world.
Disney
Walt Disney announced Monday that it will halt the release of its films to Russian theaters. This includes the Pixar’s “Turning Red”. The entertainment giant stated that it is working with its NGO partners to provide humanitarian aid to refugees and urgent aid.
H&M
, a fast-fashion chain, said Tuesday that it would “temporarily suspend all sales in Russia.” H&M stated that all its stores in Ukraine were closed due to safety concerns.
The company stated that H&M Group was deeply concerned by the events in Ukraine and stands with all those who are affected.
Ikea
According to the Swedish furniture company, it will close all Russian stores and stop sourcing from Russia.
According to Reuters, “The war has both a large human impact and is resulting serious disruptions in supply chain and trading conditions. This is why the company group have decided to temporarily pause IKEA operation in Russia.” IKEA and Ingka Group stated.
Nike
Nike announced that it would temporarily close all its Russian stores. This was in response to the company’s decision to make its app and website in Russia inaccessible.
TJX Cs
TJX, which is the owner of U.S. chain Marshall’s and TJ Maxx, as well as Home Goods and U.S. chain TJ Maxx, plans sell its 25% stake at Russian apparel retailer Familia. According to a regulatory filing, TJX has no sales in Russia or Ukraine. TJX owned $186 million of TJX’s shares before the precipitous fall in the Russian ruble.
Tech
Tech companies were also driven to the door by the pressure and pleas of Ukrainian officials .
Apple
Apple stated that it would cease selling its iPhones and other popular devices in Russia. Apple does not have any stores in Russia, but its products are very popular there and sold through many third-party sellers.
Sputnik, a government-backed news organization, was also removed from the App Store otuside Russia by Apple. Apple Maps in Ukraine has a limited data sharing policy.
Tim Cook, CEO of stated to employees that the company would match donations made to relief organizations up two-to-one.
Dell
Dell Technologies has “suspended” sales in Russia and Ukraine.
Google has removed Russian state media channels, including Google Play store, from its platforms. It has temporarily suspended Google Pay for customers from sanctions-hit Russian banking. This means that customers of these banks will not be able use the mobile payment system.
Meta
After receiving requests from several governments and the EU, the company that was formerly Facebook blocked access to Russian-controlled outlets in the European Union, Nick Clegg , the company’s policy chief, said Monday.
TikTok
TikTok has blocked Russian state media channels, including RT or Sputnik, from its platform.
“A smart business proposition”
Exiting Russia for many companies is not only about business but also about morality.
It’s very difficult to do business with Russia in the best of circumstances. It’s just insane. “So getting out is a smart and profitable business proposition,” stated James O’Rourke from the University of Notre Dame’s Mendoza College of Business. He specializes in business communication and reputation management.
O’Rourke said, referring to Charles Manson’s followers, “This is like entering into business with Manson family.” “You don’t want your name associated to those people and it won’t cost you much to disinvest.
Companies will need to respond to public sentiment as well as sanctions as the war’s human costs increase. According to the United Nations refugee agency, two million people had fled Ukraine by Thursday.
ESG is a term that refers to corporate commitments to sustainability, social, and corporate governance. ESG is a popular acronym that corporations use to promote responsible business practices.
Vanessa Burbano, Columbia Business School associate professor, said that there is also the possibility of “green washing” in which companies claim they have certain values and are on the right side ESG issues, but their behavior and practices suggest otherwise.
She said that stakeholders like consumers and employees will be interested in seeing if companies’ actions and behavior are consistent with the support companies have shown for Ukrainians.
