More than 330 Western companies and corporations have so far withdrawn from Russia. Moscow, ready to nationalize some foreign companies

Over 330 Western large companies and corporations have announced so far their withdrawal from the Russian market since the Russian army invaded Ukraine on February 24. The list of all these companies has been drafted by Yale School of Management and is available here.

Early this month, two of the world’s largest container carriers are stopping bookings of goods to and from Russia. A.P. Moller Maersk A / S, the world’s largest shipping company, said on March 1 it would temporarily suspend all container shipments to and from Russia in response to Western sanctions on Moscow following the invasion of Ukraine. The decision follows similar decisions by Ocean Network Express (Singapore), Hapag Lloyd (Germany) and MSC (Switzerland).

Big carmakers such as BMW, Ford and Apple, Audi and General Motors have also withdrawn from Russia. The Japanese automotive producers followed soon: Toyota, Honda and Mazda have also announced the suspension of production in Russia or the export of vehicles or spare parts to Russia.

On March 3, nearly 100 companies had publicly announced the cessation or suspension of business in the Russian Federation. Among them were the oil giants from ExxonMobil, British Petroleum, Shell, but also the French from TotalEnergies or the Norwegians from Equinor.

The war in Ukraine has also prompted major aircraft manufacturers Boeing and Airbus to announce that it is suspending parts delivery, technical support and maintenance operations for Russian aircraft.

In addition, US payment card companies Visa and Mastercard have blocked several Russian financial institutions from their network. The American companies Apple and Nike have stopped selling their products in Russia.

Also, the social network Tiktok, extremely popular in Russia, announced that it limits its access to its content in this country.

Netflix has made an even tougher decision and announced that it is withdrawing completely from the Russian Federation.

On March 8, Coca-Cola and Pepsi also announced their withdrawal from the country, following similar announcements by McDonald’s and Starbucks.

In a latest move, Great Britain has frozen the assets of several Russian oligarchs, including Roman Abramovich, Igor Seshin, Oleg Deripaska and Dmitry Lebedev, after billionaires were added to the sanctions list. “There is no refuge for those who supported Putin’s assault on Ukraine,” British Prime Minister Boris Johnson told Reuters.

Roman Abramovich is the owner of the Chelseaclub football club, Deripaska owns shares in En + Group, Shesin is the general manager of Rosneft, and Lebedev is the chairman of the board of directors of Banca Rossiya.

 

As such, inflation in Russia reached a record high of 9.15% in February, from 8.73% in January, the highest level in seven years amid a significant depreciation of the ruble, following Western sanctions imposed on Moscow after the invasion of Ukraine.

In response, Russia announced its intention to nationalize  some Western companies that have suspended operations. Russian authorities have already prepared a list of foreign companies whose assets can be nationalized after announcing that they are withdrawing or suspending their activities in the country, reports Izvestia, Russia’s oldest daily newspaper.

Oleg Pavlov, head of the Russian Public Consumer Initiative, said the list had already been sent to the government and the Attorney General’s Office. Pavlov says that there are currently 59 companies on the list, but that it will expand depending on the decisions taken by foreign companies.

Pavlov says that the companies already included in the list include big names such as Volkswagen, Apple, IKEA, Microsoft, IBM, Shell, McDonald’s, Porsche, Toyota, H&M and others.

Interfax reported on Thursday that the Russian government had also prepared a decree allowing the seizure of foreign aircraft in the country following sanctions imposed by the European Union and other states against Russian airlines.

big companiescorporationsinflationnationalizeRussiasanctionsukrainewithdrawal
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