Global brands exit Russia over Ukraine invasion
From Canada Goose
Some of the biggest Westerns brands, from Boeing and Exxon Mobil to Ford Motor Co, have suspended operations in Russia in an unprecedented wave of corporate action against Moscow following its invasion of Ukraine.
Winter clothing maker Canada Goose Holdings said on Wednesday it would suspend all wholesale and e-commerce sales to Russia, while Apple
Western nations have steadily ratcheted up sanctions on Russia since it invaded Ukraine last week, including against President Vladimir Putin and the central bank.
The measures have sent the rouble plunging and forced the central bank to jack up interest rates. They have also made it impossible for many companies do business in the country.
U.S. oil major Exxon said it would not invest in new developments in Russia and was taking steps to exit the Sakhalin-1 oil and gas venture, after similar moves to dump assets by Britain’s BP, Russia’s biggest foreign investor, and Shell Plc.
Since the fall of Communism, Russia, and in particular the younger generation, has embraced global brands, foreign travel and social media. Its deepening economic isolation risks putting some of those changes into reverse, and cutting off an important market for international companies.
Signalling there would be no let-up from the West, U.S. President Joe Biden said in his State of the Union address on Tuesday that Putin “has no idea what’s coming” as he joined European states and Canada in closing U.S. airspace to Russian planes.
Russian firms meanwhile have felt increasingly squeezed. Sberbank, Russia’s largest lender, said on Wednesday it was leaving the European market because its subsidiaries faced large cash outflows, adding that the safety of its employees and property was threatened.
Moscow, which has called Russia’s actions in Ukraine a “special operation”, has responded to the growing exodus of Western investors by temporarily restricting Russian asset sales by foreigners.
CHORUS OF CONDEMNATION
Apple, which said it is making changes to its Maps app to protect civilians in Ukraine, joined a growing chorus of Western companies openly condemning Russian actions.
“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,” Apple said.
“We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people,” Exxon said. Ford said in its condemnation: “The situation has compelled us to reassess our operations in Russia.”
The increasing focus of investors in environmental, social and governance (ESG) issues has added pressure on companies to act swiftly in ending ties with Russia and Russian entities.
Big U.S. technology companies said they were continuing efforts to stop Russia from taking advantage of their products.
Apple said it had blocked app downloads of some state-backed news services outside of Russia.
Microsoft said it would remove RT’s mobile apps from its Windows App store and ban ads on Russian state-sponsored media.