Companies shun Moscow and as Western sanctions bite
Shell logo for a petrol station in Birmingham on September 29, 2021.
Mike Kemp | In Pictures | Getty Images
Russia’s invasion of Ukraine has caused a rapidly growing number of companies to leave Moscow. As foreign governments tighten economic sanctions, firms are trying to cut all ties.
On Tuesday the sixth day, Russia invaded Ukraine with tanks and vehicles covering 40 miles. seen threatening the capital city of Kyiv. However, the troops of President Vladimir Putin continue to face stiff Ukrainian resistance.
A mass exodus of corporate executives from Moscow has been triggered by Russia’s invading of Ukraine, and subsequent Western sanctions.
Ben van Beurden, Shell CEO, said, “We are shocked at the loss of life and which we deplore,” saidTomorrow is Monday.
Anders Opedal is President and CEO at Equinor saidThe firm announced Monday that it had stopped new Russian investments because the company’s position was “untenable.”
BP Chair Helge Lund saidOn Sunday, Russia’s military actions were described as “a fundamental shift” by the firm. 19.75% stake in Russian-controlled oil company Rosneft“Unsilently cannot”
Following Shell’s announcement that all Russian operations would be closed, Nigel Gouldaavies (senior fellow for Russia & Eurasia at The International Institute for Strategic Studies) tweeted “This was astonishing.”
“What limits are there now for economic decoupling?” [the] West?” Gould-Davies said.
International bank HSBC, France’s Société GénéraleSouth Korea Shinhan BankThey have ended all their relationship with Russian banks. This has resulted in Western sanctions. interbank messaging system SWIFT into practice.
Volvo, a Swedish automaker, has announced that it will stop Russian car shipment until further notice. Daimler Truck in Germany said Monday that it would freeze all business operations there.
One of the largest aircraft leasing companies in the world AerCapIt announced Monday that it will stop leasing to Russian airlines in compliance with the applicable sanctions against Moscow.
The Volvo logo and the parking-assist cam were placed on an automobile’s grille at a Volvo Cars AB dealer in Stockholm, Sweden on Thursday, August 19, 2021.
Mikael Sjoberg | Bloomberg | Getty Images
Shipping huge MaerskAccording to Reuters on Tuesday, it announced that all container shipping from and to Russia would be temporarily halted in protest to Western sanctions. The company has previously indicated that they were considering suspending any bookings from Russia.
CNBC reached Maersk for clarification but could not get a spokesperson immediately.
Russian companies are being withdrawn by investors. The world’s biggest sovereign wealth fund in Norway, worth $1.3 trillion, announced on Sunday that it will divest Russian assets. Australia’s sovereign wealth funds has also indicated plans to end Russian holdings.
Some people consider cutting all ties with Russia to be the end for more than 30 years of Russian investment since the fall of the Soviet Union in 1989.
Many have come to conclusion that Russia is now too dangerous for reputation and financial reasons because of the situation in Ukraine.
CNBC’s Hadley Gamble interviewed Ukraine Foreign Minister Dmytro Kuleba in an interview Monday. imploredTo immediately end all business relations with Russia, firms must cease to do business.
They will be judged by the world. Kuleba suggested that the history would also judge them in this way.
This is because the pressure on firms not taking action increases. France is the leader in energy, as an example. TotalEnergiesAmerican giant ExxonMobilRussia is now home to the last supermajors that have significant drilling operations.
Kuleba responded to questions about these companies saying, “I can phone, encourage, them and any other businesses.” Stop doing business with Russia, if you want peace to prevail, and if your goal is to protect civilian lives, then stop doing business.
You should stop doing business in Russia. You can do this immediately if you are able to demonstrate moral support. “Trading with Russia is funding aggression, murder of civils and destruction peaceful cities,” he said.
TotalEnergies, Tuesday’s condemnation of Russia’s aggression on Ukraine, stated it wouldn’t provide capital for any new projects in Russia.
“TotalEnergies supports the scope and strength of the sanctions put in place by Europe and will implement them regardless of the consequences (currently being assessed) on its activities in Russia,” the company said.
CNBC reached ExxonMobil for clarification but could not get a spokesperson from the company.
Shell has said it will exit all its Russian operations, including the flagship Sakhalin 2 LNG plant in which it holds a 27.5% stake — and which is 50% owned and operated by Russian gas giant Gazprom. It also stated that it will end its participation in the controversial Nord Stream 2 pipeline.
— CNBC’s Matt Clinch contributed to this report.