Putin’s CEO crisis

Putin’s CEO crisis
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Islam News – Giant global businesses in every sector are abandoning Russia following the invasion of Ukraine.

Why it matters: In addition to condemning the invasion, the companies see an impossible environment — from worker safety … to the logistics of getting supplies … financial and sales disruption … and the complexity of complying with sanctions.

State of play: Financial sanctions have isolated Russia from the rest of the world. Businesses operating in Russia have an increasingly limited ability to collect revenue or pay workers and suppliers.

Economic sanctions, including export controls, have curtailed imports.
Some workers are being moved out of Russia.
Restricted airspace and travel are preventing companies from getting equipment they need to continue to operate.
Between the lines: Some companies that have very little physical presence in Russia — including many in tech, retail and media — are limiting how products are used in Russia, or have pulled them.

Flashback: Since the Soviet Union’s collapse three decades ago, Russia had been seen as an emerging market with long-term growth potential.

In the seven days since the invasion began:

Boeing suspended major operations in Moscow, as well as maintenance and technical support for Russian airlines.
Airbus is halting supply of parts and services to Russian airlines.
Shell will sever ties with Russian gas giant Gazprom and end its roughly $1 billion financing of the Nord Stream 2 gas pipeline.
BP is exiting its nearly 20% stake in Russian oil giant Rosneft, and faces a potential financial hit of as much as $25 billion.
Exxon Mobil says it will exit Russia oil and gas operations valued at more than $4 billion and cease new investment.
GM, which sells only about 3,000 cars a year in Russia, says it will suspend exporting vehicles.
Ford suspended operations.
BMW stopped shipments and will stop production in Russia.
Daimler Truck Holdings said it would no longer send supply components to its Russian joint-venture partner.
Volvo Cars, owned by Chinese conglomerate Zhejiang Geely, halted sales and shipments.
Renault ceased operations and production at two assembly plants because it can’t get parts.
VW paused delivery of Audis already in Russia so it can adjust car prices to reflect the decline in value of the ruble.
Harley-Davidson suspended shipments to Russia.
Adidas suspended its partnership with the Russian Football Union.
Nike ceased online sales because it can’t guarantee delivery.
FedEx and UPS suspended shipments.
Yoox Net-A-Porter Group and Farfetch, luxury e-commerce platforms, are suspending deliveries in Russia.
Apple has paused product sales and limited services (including Apple Pay), on top of ceasing exports to Russia and restricting features in Apple Maps in Ukraine to safeguard civilian safety.
Dell stopped selling products.
Ericsson is suspending deliveries to Russia.
Walt Disney is pausing film debuts in Russia. Warner Bros., Sony, Paramount and Universal say they won’t release films in the country.

Source:Axios

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