Factbox-Tough Words, Tough Action: How Companies Rejected Russia | Investment news

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(Reuters) – Corporate actions to censor Russia after the invasion of Ukraine vary widely and include some measures required by law and some voluntary, with comments ranging from harsh sentences 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) on Sunday said they will no longer have a member company in Russia due to the country’s invasion of Ukraine.

Energy companies led by BP, Shell and Exxon Mobil promise to sell Russia’s shares and exit the country. Austrian oil company OMV will pull out of Russia, saying it would take an expected € 1.5-1.8 billion hit as it tries to distance itself from the country.

Among many others, Accenture, with 2,300 employees in Russia, has said it will go out of business and the Mercedes-Benz Group said it plans to spin off its stake in Russia’s 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 examines the implications of a new media law signed on Friday by President Vladimir Putin.

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

American Express Co said Sunday it will suspend all operations in Russia and Belarus.

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

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

US payment companies Visa Inc and Mastercard Inc said they were suspending operations in Russia due to the invasion of Ukraine and that they would work with customers and partners to cease all transactions there.

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

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

Clothing retailer H&M, automakers including GM and BMW, as well as spirits maker Diageo and motorcycle maker Harley Davidson, are among the global companies that don’t sell. Most do not export goods to Russia, which would be difficult given the decisions of the shipping companies to abandon the 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 has ceased trading in Russia, shutting down its 502 stores and stopping online sales. Milanese luxury group Prada has suspended its retail activities in Russia.

In contrast, restaurateurs Burger King and Papa John’s pointed out that the restaurants flying their flags in Russia were owned by local businesses. “We have no plans to ask the independent franchisee that owns and operates Papa Johns stores in Russia to close their stores,” the pizza chef said.

STOPPED PRODUCTION AND STOPPED EXPORTS

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

Nissan, Mazda Motor Corp and Mitsubishi Motors Corp are likely to shut down 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 the shutdown of local production, noting a lack of supplies.

Many of the major global brands use seldom heard corporate language that clearly blames Russia for attacking Ukraine. Apple and Ford used very similar language to describe their deep concern over the invasion of Russia. Occidental Petroleum CEO Vicki Hollub called the invasion “insane and inhumane” in comments made the day after the invasion.

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

Japanese companies, including Mitsui & Co, Mitsubishi Corp, Itochu Corp and Marubeni Corp with stakes in LNG export terminals in Russia, are under increasing pressure over their ties to Russia and are scrambling to evaluate their operations, insiders and government say.

Many commodity traders like Cargill don’t say much. Big consumer brands include Nestlé, Procter & Gamble, Pepsi, and cookie maker Oreo Mondelez have yet to comment on the status of their operations in Russia.

McDonald’s Corp, which has 847 restaurants in Russia, 84 percent 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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