As the Russia-Ukraine crisis unfolds, multinational companies around the world have announced changes to their supply chains to reduce their footprint in Russia.
More companies continue to suspend their business operations in Russia, with a few exiting deals in the country altogether. The announcements follow as the United States and its allies continue to impose expanding sanctions against Russia in response to the country’s invasion of Ukraine last month.
Many companies have indicated their decision to halt operations is an act of altruism.
Below is an industry-by-industry analysis of how companies are responding. The list is by no means comprehensive, as the number of businesses suspending their operations in Russia continues to grow by the day.
Food and beverage: McDonald’s on March 8 announced it “has decided to temporarily close all our restaurants in Russia and pause all operations in the market.” Starbucks, too, announced it was suspending “all business activity in Russia, including shipment of all Starbucks products.” Coca-Cola and its competitor, PepsiCo, each announced they were doing the same. In addition, Yum Brands, which owns KFC and Pizza Hut, said it was pausing investment and development in Russia.
Retail: On March 7, clothing retailer Levi Strauss announced it is “suspending commercial operations in Russia, including any new investments.” On March 2, clothing retailer H&M announced it has “temporarily paused all sales in Russia.” That same day, TJX announced in a regulatory filing it was selling its 25 percent stake in Familia, a privately held, Luxembourg-based retail chain in Russia. On March 3, furniture company Ikea said on its website it was pausing “all export and import in and out of Russia and Belarus.”
Adidas said it was closing its stores in Russia, as well as suspending its online store, according to a report from the Wall Street Journal. Nike indicated the same on its Russian website in part because it ”cannot guarantee product delivery.”
Entertainment: On March 10, the Walt Disney Company announced it was pausing all business in Russia after previously halting the release of theatrical films in the country. Warner Bros. announced the same. Sony Music on March 10 announced it was suspending its operations in the country. In addition, streaming service Netflix told Variety it was pausing all future projects and acquisitions in Russia, as well as shutting down its service entirely.
Accounting: The Big Four audit firms—Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers—have decided to sever ties with their operations in Russia, according to a report from the Wall Street Journal. The Russian-based auditing firms are typically separate legal entities that operate under the Big Four firms’ names and networks. They will have to separate themselves into independent, rebranded companies, a process that will likely take months, the WSJ reported.
Shipping: Many shipping and logistics carriers—air, sea, road, and rail—have halted services to/from Russia. Boeing, for example, suspended parts, maintenance, and technical support for Russian airlines and further announced March 3 it’s contributing a $2 million emergency assistance package “to support humanitarian response efforts in Ukraine.”
In addition, Airbus said it has stopped sending spare parts to Russia, Lufthansa announced it was canceling all flights to and from Russia, and Lufthansa Technik said it has stopped all services for Russian customers.
In the shipping industry, Denmark-based Maersk said March 1 it had suspended new bookings within ocean, air, and intercontinental rail to/from Russia “due to direct and indirect sanctions.” Ocean Network Express, Hapag-Lloyd, MSC, and Swiss logistics company Kuehne+Nagel also announced they suspended bookings to/from Russia. However, Maersk, MSC, and Kuehne+Nagel said they will continue to accept bookings for delivery of food, medical equipment, and humanitarian supplies.
Automakers: Due to supply chain disruptions, many automakers have either halted production of vehicles in Russia, suspended shipments into the country, or a combination of the two.
On March 1, Ford announced it was reassessing its operations in Russia. “In recent years, Ford has significantly wound down its Russian operations, which now focus exclusively on commercial van manufacturing and Russian sales through a minority interest in the Sollers Ford joint venture,” the company stated. Given the situation, Ford said, it has “informed our JV partners that we are suspending our operations in Russia, effective immediately.”
As of March 4, Toyota Motor Russia stopped production at its St. Petersburg plant “and has stopped imports of vehicles, until further notice, due to supply chain disruptions.” In addition, as of Feb. 24, Toyota said it stopped all activities in its 37 retail locations in Ukraine.
Other automakers that have suspended activities in Russia include luxury British sports car maker Aston Martin, Daimler Truck, General Motors, Harley-Davidson, Honda Motor, Jaguar, Land Rover, and Volvo Cars, according to Reuters.
Oil and gas: Shell on March 8 announced it was withdrawing from Russia following criticism it faced for purchasing Russian crude oil at a discounted price days after it originally said it cut ties with the country.
“We are acutely aware that our decision last week to purchase a cargo of Russian crude oil … was not the right one, and we are sorry,” the company stated. “As we have already said, we will commit profits from the limited, remaining amounts of Russian oil we will process to a dedicated fund.”
British oil company BP on Feb. 27 announced it was exiting its 20 percent shareholding in Rosneft, which it has held since 2013.
“BP has operated in Russia for over 30 years. … However, this military action represents a fundamental change,” said BP Chair Helge Lund. “It has led the BP board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue.”
ExxonMobil followed suit, stating it was “beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture,” a project Exxon was operating on behalf of an international consortium of Japanese, Indian, and Russian companies.
Commodities giant Glencore said it “condemns the actions taken by the Russian government against the people of Ukraine.” While it has “no operational footprint in Russia and our trading exposure is not material for Glencore,” it said it was reviewing all its business activities in the country, including its equity stakes in oil company Rosneft and En+ Group, which holds a controlling share in the world’s second largest aluminum producer.
Energy: Danish multinational power company Ørsted announced it has stopped all sourcing of biomass and coal for its power stations from Russia and will not enter new contracts with Russian companies. Additionally, it said, “We have made sure that no direct Ørsted suppliers for the build-out of renewable energy are Russian.”
On March 1, Austrian energy group OMV said it has terminated plans to pursue negotiations with Gazprom regarding a gas field project. It also said it will review its involvement in the Nord Stream 2 Pipeline.
On Feb. 28, Norwegian energy group Equinor announced it has decided “to stop new investments into Russia and to start the process of exiting Equinor’s Russian joint ventures.”
Industrials: Finland-based chemicals company Kemira announced it has discontinued deliveries to Russia and Belarus “until further notice,” which it said will “primarily impact pulp and paper customers in Russia.”
Technology: “From a business perspective, we have suspended all shipments into Russia at this time, and we’ll continue to adhere through all relevant sanctions and export controls,” Hewlett Packard Enterprise Chief Executive Antonio Neri said on a March 1 earnings call. Dell and Apple also said they have suspended product sales in Ukraine and Russia.
Editor’s note: This story was originally published March 7 and updated March 11 to include the addition of multiple companies and industries.