Factbox – Tough Words, Tough Action: How Business Pushed Back Russia | Investment News

(Reuters) – Corporate actions aimed at censoring Russia after its invasion of Ukraine vary widely and include some measures required by law and other voluntary ones, with comments ranging from harsh condemnations to more measured promises to review business in the country.

Here are some actions of large multinationals:

Two of the Big Four accounting firms KPMG and PricewaterhouseCoopers LLP (PwC) said on Sunday they will no longer have member firms in Russia due to the country’s invasion of Ukraine.

Energy companies led by BP, Shell and Exxon Mobil promise to sell stakes in Russia and leave the country. Austrian oil company OMV is to pull out of Russia, saying it would need a €1.5-1.8 billion hit as it seeks to distance itself from the country.

Among many others, Accenture, with 2,300 employees in Russia, said it would cease operations and Mercedes-Benz Group announced plans to sell its stake in Russian Kamaz.

TikTok, the Chinese-owned video app, said on Sunday it would suspend live streaming and uploading of videos to its platform in Russia as it considers the implications of a new media law signed on Friday by President Vladimir Putin.

Netflix Inc has suspended its service in Russia, a company spokesperson said Sunday.

American Express Co announced on Sunday that it was suspending all operations in Russia and Belarus.

French food group Danone said in a statement on its website that it was suspending its investments in Russia and that one of its two factories had closed in Ukraine, following the Russian invasion of Ukraine.

Boeing cut aircraft sales and support, saying it was and would follow US sanctions. Washington’s export rules have been changed to specifically crack down on technology that could be used by the military, affecting a wide range of industries, such as PC maker Dell Technologies, which halted sales to Russia. Russia has banned Western airlines from Russian space.

U.S. payment companies Visa Inc and Mastercard Inc said they were suspending operations in Russia following the invasion of Ukraine and would work with customers and partners to end all transactions there.

United Parcel Service Inc and FedEx Corp, two of the world’s largest logistics companies, have halted delivery service to Russia and Ukraine.

Travel booking software provider Saber Corp said it terminated its distribution agreement with Aeroflot, which hurt the Russian flag carrier’s ability to sell tickets.

Clothing retailer H&M, automakers such as GM and BMW, as well as liquor maker Diageo and motorcycle maker Harley Davidson, are among the global companies not selling. Most do not export goods to Russia, which would be difficult given the decisions of shipping companies to drop Russian service. Nike and IKEA, a Swedish furniture retailer with a chain in Russia, are temporarily closing their stores.

Spanish fashion retailer Inditex, owner of the Zara brand, also said it halted business operations in Russia, closing all 502 stores and halting online sales. Milan-based luxury group Prada has suspended retail operations in Russia.

In contrast, restaurateurs Burger King and Papa John’s pointed out that Russian-flagged restaurants were owned by local businesses. “We do not intend to ask the independent franchisee who owns and operates Papa Johns stores in Russia to close their stores,” the pizza maker said.

PRODUCTION STOPPED AND EXPORTS STOPPED

Toyota Motor Corp and Nissan Motor Co halted exports to Russia, citing logistical problems as Toyota halted local production.

Nissan, Mazda Motor Corp and Mitsubishi Motors Corp are all likely to halt local production when parts stocks run out, they say.

Ford has gone out of business, but its joint venture partner still has a factory in the country. Many other automakers, including France’s Renault and Japan’s Toyota Motor Corp, have described local manufacturing shutting down, with some noting a lack of supply.

Many major global brands are using rarely heard corporate language that clearly accuses Russia of attacking Ukraine. Apple and Ford have used very similar language to describe their deep concern over the Russian invasion. Occidental Petroleum chief executive Vicki Hollub called the invasion “crazy and inhumane” in comments made the day after the invasion.

Oil company BP’s decision to sell out of Russia at a cost of up to $25 billion came as a shock to an industry that has worked closely with Russia. The condemnations by Apple and Disney were unusual.

Japanese companies, including Mitsui & Co, Mitsubishi Corp, Itochu Corp and Marubeni Corp that have stakes in liquefied natural gas export terminals in Russia, are coming under increasing pressure over their ties to Russia and are trying to assess their operations, according to company and government insiders.

Many commodity traders such as Cargill don’t say much. Major consumer brands including Nestle, Procter & Gamble, Pepsi and Oreo cookie maker Mondelez have yet to comment on the status of their operations in Russia.

McDonald’s Corp, which has 847 restaurants in Russia, 84% of which are company-owned, did not comment on its operations.

(Reporting by Peter Henderson, Anna Driver and Scott DiSavino; Editing by Sam Holmes, David Holmes, Jane Merriman and Diane Craft)

Copyright 2022 Thomson Reuters.

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