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 nine days since the invasion began:...
- Estée Lauder said it was suspending "all commercial activity in Russia, including closing every store we own and operate, as well as our brand sites and shipments to any of our retailers in Russia."
- PricewaterhouseCoopers was cutting ties with its Russian member, affecting 3,700 partners and staff in the country.
- KPMG, another one of the Big Four accounting firms, was ending its association