Business

Global companies continue to abandon Russia

Over 100 Western companies have left the Russian market or suspended their operations since Moscow started its war on Ukraine

As the Ukraine-Russia war nears its fourth month, the number of companies that suspend or terminate their commercial activities in the vast state of Russia has been on the rise.

Russia became the world’s most-sanctioned country due to the war it started on Ukraine, with the reach of the punitive measures ever expanding.

The number of sanctions against the country has exceeded 10,000 in sectors such as finance, energy, transportation, media, technology, automobiles, sports, and trade.

Over 100 Western companies left the Russian market or suspended their operations since Moscow started its war on Ukraine, affecting at least 14 major industries in the country.

US tech companies Apple and IBM, software firms Microsoft and Oracle,and chipmakers Intel and AMD are among the major firms that abandoned the country following the imposition of Western sanctions.

Germany’s Mercedes-Benz, BMW, and Volkswagen and Japan’s Honda, Toyota, and Mazda are just a few of the global carmakers that left a hole in Russia’s auto industry.

Despite its vast crude oil and natural gas reserves, Russia has seen its partnerships going sour with various energy companies around the world, such as the US’ ExxonMobil, Royal Dutch Shell, Britain’s BP, Norway’s Equinor, and Germany’s E.ON.

Shipping firms stopping operations in Russia include FedEx, UPS, and DHL, while German industrial giant Siemens and Swedish furniture juggernaut IKEA did the same.

Finance is another Russian sector hit hard by sanctions and companies leaving or suspending their operations, such as Visa and Mastercard, global banks like HSBC and Deutsche Bank, and US investment firms Goldman Sachs and JPMorgan.

Foreign media in Russia was also affected with the departure of the BBC and CNN, while the retail clothing and shoe sector lost Adidas, Nike, Gucci, and Spanish-based Mango.

The departure of Disney, Warner Bros, Netflix, Nokia, and TikTok had a large impact on Russia’s telecommunications and entertainment sectors.

Popular food and beverages brands such as McDonald’s and Coca-Cola leaving the country deprived the public of some best-loved Western tastes for the first time since the Cold War.

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