By Ross Kerber

(Reuters.) Several Western companies cut ties with Russia after the invasion of Ukraine by President Vladimir Putin triggered sanctions. Other countries are now studying how to proceed.

European sport and entertainment companies were the first to make such announcements.

Manchester United Premier League club withdrew sponsorship rights from Russian airline Aeroflot. Formula One cancelled 2022 Russian Grand Prix. Organisers of Eurovision Song Contest stated that Russia will not be permitted to compete in this year’s final.

According to the European Broadcasting Union, the “inclusion” of a Russian entry into this year’s Eurovision contest will bring disrepute on the competition.

U.S. carrier Delta Air Lines Inc. (NYSE 🙂 announced that Aeroflot’s codesharing services had been suspended without giving any reason.

Dan Sondhelm of Alexandria Marketing Consultant said that businesses were trying to strike a balance between the potential reputational damage of dealing with Moscow and their economic interest.

Sondhelm stated that companies will need to take time to decide whether to act or not. It takes time.

The United States on Thursday imposed sanctions on Russia that targeted five major Russian banks, includingstate-backed Sberbank and VTB, the country’s two largestlenders, as well as wealthy individuals, and announced new export control measures.

The European Union members agreed on Friday to suspend the European assets of Putin, his foreign minister and other related measures.

According to some experts, lawyers and others, Western executives may seek to cancel commercial arrangements even if not legally required. This is to avoid problems in public relations or to help the bureaucracy navigate any sanctions in technology exports.

Many of them will just abandon any Russian customers. They will just say ‘we’re not going to deal with that,'” said William Reinsch, a trade expert at the Center for Strategic and International Studies and a former U.S. Commerce Department export official.

David Smith, a London-based partner of McGill and Partners insurance brokerage, stated that, even prior to the invasion and sanctions two underwriters had informed him they would not insure Russian shipping companies operating in Russian waters, on the basis they do not wish to promote business relations with Russia.

“People should be thinking more and more about the moral issue, it’s not just a box-ticking exercise,” Smith said.

Western brands that operate in the region may face backlash. Many Facebook posters (NASDAQ:), for example, were outraged by a McDonald’s Corp verified account posting that they had closed its restaurants in Ukraine but didn’t address their Russia locations.

The Russian military occupiers and their children will still enjoy various burgers. My child is in a bomb shelter crying,” Vitaliy Skalsky told Reuters Ukrainian through a Facebook message.

McDonald’s employees in Ukraine and the United States did not respond when asked.

“Fallen Fol” OF CORPORATE STANDARDS

Many sources within the highly-regulated industry claim that Western banks and financial companies have studied the potential consequences of sanctions.

These rules ban direct transactions with sanctioned organizations and “correspondent”, banking relationships which allow Russian banks make international payments using U.S. bank accounts. However, they lack clarity in areas like buying or selling Russian sovereign bonds on secondary markets. This was stated by a senior source from a European bank that has U.S. operations.

According to this source, many details regarding the operation of the sanctions must be confirmed by U.S. Treasury’s Office of Foreign Assets Control and other international regulators. OFAC has not responded to any requests for comment.

A chief investment officer for a European asset manager stated that, on condition of anonymity, it was investigating whether it would sell Russian corporate and sovereign debt. The same could be said of bonds held by a company which has failed to address climate change.

The executive stated that Russian actions had violated the standards you’d set at corporate level.

However, client interests may call for a more flexible approach. This individual said. Executive said that client interests might dictate a different approach.