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U.S. regulator asks companies about exposure to Russia’s invasion -Breaking


© Reuters. FILE PHOTO – The seal of U.S. Securities and Exchange Commission is seen in Washington D.C. U.S.A, May 12, 2021. REUTERS/Andrew Kelly

By Ross Kerber

(Reuters) – The U.S. Securities regulator said Tuesday that companies may be required to report the possible impact Russia’s invasion in Ukraine on their businesses, including on employee bases or operations, as well as if assets have been nationalized.

According to U.S. Securities and Exchange Commission, its Division of Corporation Finance stated that companies could also be required to declare their risk to conflict by Russian securities and sanctions.

The SEC stated that many companies had experienced increased cybersecurity risks and ongoing supply chain problems since the invasion. They also suffered volatility in relation to commodities trading prices.

According to Yale University, close to 1,000 companies from the West have stopped or reduced their operations in Russia after its February invasion. Many are reporting associated losses.

However, investors may find it interesting to see the extent of pullback. As of Tuesday afternoon, 144 businesses were not pursuing new development or investments, while 125 companies were scaling back operations and continuing with others.

SEC representatives didn’t immediately reply to my request for further comment.

It provided some examples of the questions the agency may ask companies about the situation in its notice. The agency asked companies to explain the impacts of any actions or inactions arising out of or related to the invasion. This included the payment of taxes by the Russian Federation.