Chanel, Unilever, Adidas add to brands suspending business in Russia
March 10, 2022 - Thursday 10:03 AM by Carby Rose Basina
Multinational corporations were driven to re-examine their ties with Russia after Russian President Vladimir V. Putin initiated the invasion of Ukraine on Feb. 24. McDonald's, PepsiCo, and Shell, for example, had formed long-term partnerships with the country and were confronted with untangling knotty relationships.
Due to investor and customer pressure, many Western firms have begun to withdraw their investments, close locations, and suspend sales in Russia .
Chanel, LVMH, Kering, Hermès, and Richemont, among the world's leading luxury players, have all put a halt in Russian commercial trading overnight.
Some firms were wary of criticizing President Putin or referring to the conflict as a war in public comments, given the fact that many of them employ locals.
Due to "growing concerns regarding the current situation in Europe," Kering said in a statement that company stores, including Gucci, Balenciaga, and Saint Laurent, will close momentarily. Chanel announced that it had closed its Russian stores and paused its e-commerce operations due to "increasing concerns about the current situation, the growing uncertainty, and the complexity to operate" in the country.
Here’s a few more Western firms that have confirmed their withdrawal from the Russian market:
Retail and consumer goods
Imports and exports have been halted by Unilever, which owns brands like Dove and Sunsilk.
Ikea did as well, however it will continue to operate its Mega shopping center network in Russia to guarantee that clients have access to basic necessities.
The owner of T.J. Maxx and Marshalls have pledged to sell their shares in Familia, a Russian off-price retailer with over 400 locations.
H&M, which had roughly 170 stores in Russia, together with Nike, which has about 116 outlets, both halted sales.
Canada Goose, based in Toronto, will stop selling wholesale and online in Russia.
Adidas announced that sales in Russia would be halted, resulting in a 1% drop in revenue for the year.
Shell is exiting its joint operations with Gazprom, the Russian natural gas conglomerate.
BP plans to sell its almost 20% interest in Rosneft, Russia's state-owned oil business.
Exxon Mobil will withdraw from a major oil and natural gas project.
American Express, Mastercard, Visa
Cards issued by Russian banks, such as American Express, Mastercard, and Visa, will not work in other countries, and cards issued elsewhere will not work in Russia.
Citigroup, which employs approximately 3,000 people in Russia, said it would "assess our operations in the country." Citi's consumer division in Russia is now for sale as part of the company's broader pullout from international markets announced last year.
Deloitte, EY, KPMG, PwC
The Big Four accounting companies are leaving the country in droves.
McDonald's said that it would temporarily close almost 850 stores in Russia and suspend operations.
Starbucks said that all of its shops in Russia, which are owned and operated by the Kuwaiti firm Alshaya Group, will close.
PepsiCo announced that it will stop selling soda in Russia but would continue to manufacture dairy and baby food there as part of a "humanitarian" endeavor.
Amazon Web Services
Amazon Web Services' cloud computing services are no longer accepting new users.
Google has halted advertising across all of its businesses, including search and YouTube.
Microsoft, Apple, IBM
Sales have been halted by Microsoft and Apple. IBM has halted operations.
Cogent and Lumen
Access was cut off by Cogent and Lumen, which supply so-called backbone internet services.
Uber said it was working to "accelerate" its exit from Yandex, a ride-hailing service run by a Russian internet company.
Sony, the company behind the PlayStation video game console, announced that it had "suspended all software and hardware shipments" to Russia, as well as the operation of the PlayStation Store there.
UPS, FedEx, DHL
Shipments to and operations in Russia and Belarus have been halted by UPS, FedEx, and DHL.
Russian airlines will no longer get components, maintenance, or technical support from Airbus and Boeing. Boeing also said that it will no longer purchase titanium from Russia, a major supplier of the metal to the aircraft sector.
American Airlines, Delta Air Lines, United Airlines
American Carriers, Delta Air Lines, and United Airlines have discontinued ties with Russian airlines in terms of ticket sales. All three airlines have likewise ceased operations over Russia.
The hotel chains Hyatt and Hilton have halted development activity in the country, and Hilton has closed its Moscow headquarters.
On the other hand, Uniqlo owner Fast Retailing, whose founder told Japan's Nikkei newspaper that "clothing is a need of life," has defended its intention to continue operating in Russia.
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