With the outbreak of the war between Russia and Ukraine, the economy of Russia has witnessed a considerable drop. Many companies operating their businesses in Russia have halted their operations in the country. Whether due to their own choice or political constraints, leading companies serving in different industries in Russia have entirely or partially suspended their operations, closing ties with Russian clients, all closing all sales operations to Russian consumers.
Hundreds of American companies have pledged to cut down their political ties with Russia to condemn the Russian invasion of Ukraine while providing humanitarian support to the Ukrainian people. The alterations in international sanctions, the termination of transportation and airspace links, and financial constraints due to War have made it difficult for many companies to carry out their business operations, make financial transactions, or transfer goods to Russia. With that, the companies still running their business in Russia are receiving backlash from global consumers due to their aid to the Russian government.
The list of companies who have stopped doing business in Russia keeps updating every hour. However, we have enlisted a few companies serving in different industries who have entirely shut down or halted their business dealings with Russia due to the War.
Shutting Down of Oil and Gas Industry
Russia’s most prominent international investor, BP Plc, withdrew its 20% stake in the state-operated Rosneft, which could culminate in a $25 billion write-off and cut the company’s international gas and oil production by a third.
Followed by BP Plc, Shell Plc also hinted at ending its operations in the country and supporting Russia’s oil ban, calling the Russian invasion senseless aggression. The company would terminate all affiliations with state-controlled Gazprom, including the Sakhalin-II liquefied natural gas facility and engagement in the Nord Stream 2 pipeline project. These projects cost almost $3 billion.
Termination of Financial Operations
The finance sector faces huge losses as many finance companies have withdrawn their investments from it. Companies including Visa, MasterCard, and American Express have terminated their ties with Russia. The cards issued by Russian banks are no longer valid, and if they are given elsewhere, they cannot be used in the country anywhere.
Similarly, Citigroup, which has almost 3000 employees in Russia, has concluded that it will do limited operations in the country and assess the situation for the future. With that, major accounting firms like Deloitte, KPMG, EY, and Pwc are winding off their operations in Russia, severely impacting the monetary procedures of the country.
The Closing of Food Industry
Many popular food outlets have decided to discontinue their food operations in Russia owing to the Russian aggression in Ukraine. Mcdonald’s has closed its outlets in almost 850 locations across Russia. PepsiCo has stated that it will stop exporting soda to the nation but continue to deliver dairy and baby food products as a part of a humanitarian effort. Coca-Cola Russia has also terminated its services in the country.
Due to similar reasons, Kraft Heinz Co. has terminated all its exports to Russia and the proposal of new investment in the nation. Oscar Mayer hot dogs and Philadelphia cream cheese have also withdrawn their imports from Russia.
The Withdrawn of Media in the Country
The popular media platforms have stopped releasing their movies and series in Russia. The famous media platform Netflix has suspended its services in the country, and no new customers will sign. Similarly, The Walt Disney Company, Sony, and Warner Bros stopped the release of movies, web series, and other forms of entertainment in the country.
Meanwhile, various social media platforms, including TikTok, are closing their services due to Russia’s new “fake news” law limiting information about Ukraine’s invasion.
The Impact on Tech Industry in the Country
The tech industry of Russia, with other sectors, has also got impacted due to the ongoing Ukraine vs. Russia war. Samsung Electronics Co., one of the leading exporters of smartphones, has halted its operating in the country. It has a 30% share in the Russian market and significantly caused a drip of imports. Also, Amazon Russia’s sanction has been curbed, and it has stopped roping in new customers for its cloud computing services. Google has suspended advertising on its searches and youtube products.
The Effect on Travel and Logistics
The Russia ban in the international market has also affected travel and logistics. Airbus and Boeing have halted the supply of parts, maintenance, and technical support services to airlines in the country. Boeing also stopped buying titanium from Russia, which is a vital metal source for the aerospace industry in Russia. Amadeus, which provides ticket-selling technology to Russia, has also ended their operations in the country. The two most prominent hotel chains, Hyatt and Hilton, have finished development projects in the country.
The War Has Transformed the Russian Economy Forever
The Russian invasion of Ukraine has wholly reshaped the Russian economy regarding international ties with other nations. The economy has been severely hit by the termination of several relations with multiple western companies. Until the tussle between Ukraine and Russia gets resolved, the Russian economy is bound to suffer over time. More and more companies are withdrawing their investment, culminating in poor monetary procedures. Until both countries come to a peaceful agreement, things will keep deteriorating in Russia, both economically and socially.