Factbox-Companies cut Russia operations and trade as sanctions tighten -Breaking
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© Reuters. FILEPHOTO: Jaguar Land Rover’s new Jaguar F-Type models were unveiled at the world premiere held in Munich (Germany) on December 2, 2019. REUTERS/Michaela Rehle(Reuters) – Companies took action to restrict, suspend or terminate Russian business activity following the imposition of severe sanctions after Moscow invaded Ukraine.
Here is a listing of Russian companies who have indicated plans to leave Russia, or reduce their activities in Russia.
AUTOMAKERS
Daimler Truck (OTC) said that Russia would immediately be frozen in its commercial activities, which includes its partnership with Kamaz the Russian truckmaker.
Mercedes-Benz Group (pre-spinoff) is exploring legal options for the quick divestment of its 15% interest in Kamaz.
Volvo Cars in Sweden said that they would stop shipments of cars to Russia. According to industry data, Volvo sold about 9,000 cars in Russia by 2021.
General Motors (NYSE) announced that it will suspend any vehicle exports from Russia for a while. Detroit does not operate any plants in Russia and sells only about 3,000 vehicles each year there. The company also doesn’t have much supply-chain exposure.
Mitsubishi Motors Japan (OTC:) has indicated that it will suspend Russia’s production and sales of Mitsubishi cars due to possible supply chain disruptions.
French automobile manufacturer Renault (PA) is going to suspend certain operations in Russia’s car assembly plants this week because of logistics bottlenecks.
Citibank reports that Renault, one of the largest Western corporations, is most exposed to Russia. According to Citibank it earns 8% of its core earnings in Russia. Avtovaz Russia’s most important carmaker is also under its control.
Harley-Davidson Inc. (NYSE:) announced that it has suspended business operations and stopped shipments to Russia of Harley-Davidson bikes.
Ford Motor (NYSE – Co) Co advised joint venture partner Sollers that they are immediately suspending Russian operations, pending further notice.
Jaguar Land Rover (JLR), a British luxury car manufacturer, and Aston Martin stopped shipping vehicles to Russia.
Aston Martin stated that Russia and Ukraine account for less than 1 percent of the company’s global sales.
BMW Germany has announced that Russia will not be allowed to export its cars and would cease production.
AVIATION
AerCap Holdings is the largest international aircraft leasing company, with headquarters in Dublin. They will no longer lease to Russian airlines.
About 5%, according to company net book value, was leased by Russian airlines at 2021.
Boeing, the U.S. plane manufacturer (NYSE:), said that it will suspend maintenance, parts, and technical support for Russian airlines.
BANKS
Global bank HSBC will begin to cut relations with a variety of Russian banks, VTB being the largest.
With only 200 employees, the bank is not exposed in Russia and has annual revenues of $15,000,000 in Russia. This compares to its $50 billion global income.
Nordea Nordic Bank said trading was suspended in Russia-exposed funds.
According to two sources, Raiffeisen Bank International is investigating Russia leaving. Nearly a third of group net profits last year was contributed by the Austrian Bank’s Russian operations. According to a spokesperson, RBI does not intend on leaving Russia.
ENERGY
TotalEnergies, France announced that it will no longer finance new Russian projects.
BP (NYSE) will be selling its Russian oil giant Rosneft 19.75% stake. Shell (LON) announced that it will exit all of its Russian operations. This includes the Sakhalin 2 LNG Plant, in which it has a 27.5% share and is owned by Gazprom.
Equinor, a Norwegian energy company will begin the process to sell its Russian joint ventures. Over 30 years of presence in Russia, Equinor has entered into strategic cooperation agreements with Rosneft in 2012.
Denmark’s Orsted has stopped buying Russian coal or biomass to power its plants, but it will still continue to purchase up to 2 billion cubic meters of Gazprom each year as part of a long-term agreement.
Orsted said that they were not entering into contracts with new companies and aren’t using Russian suppliers.
Exxon Mobil (NYSE) Russia Oil and Gas Operations will Be Exited. They are valued at $4 Billion. New Investments Will be Restricted as a Result of Moscow’s Invasion of Ukraine.
Eni, an Italian energy company, planned to dispose of its share in Blue Stream Pipeline carrying Russian Gas to Turkey. It co-owns the pipeline with Russia’s Gazprom.
Eni has long-term strategic contracts with Russian gas suppliers. Eni purchased nearly 22 billion cubic meters of Russian gas in 2020.
OMV, Austria’s energy company has canceled plans to acquire a stake at Gazprom and will now be reviewing its involvement in Nord Stream 2 pipeline.
Centrica (OTC-:), the British’s largest energy supplier, has announced it is ending its gas supply arrangements with Russian counterparts.
TELEVISION AND FILM
Hollywood Studios Disney, Warner Bros. and Sony Pictures Entertainment announced that they will suspend theatrical release of new Russian films.
INDUSTRIALS
Swedish engineering firm Sandvik has suspended its Russian operations.
Russia was home to 3.5% of Sandvik’s 2021 sales. While there is no manufacturing in Russia, the group employs approximately 900 people in sales and service.
LOGISTICS
U.S.-based United Parcel FedEx Corp and Service Inc (NYSE) have announced they have stopped delivery to Russia, Ukraine.
Ocean Network Express, a container shipping company, has suspended all bookings for Russia.
As a result of Western sanctions, Maersk has temporarily stopped all container shipping between Russia and the United States.
Maersk offers container shipping services to St. Petersburg, Kaliningrad, in the Baltic Sea and Novorossiysk, in the Black Sea and Vladivostok, Vostochny, on Russia’s eastern coast.
Deutsche Post (OTC) announced that it has stopped DHL delivery to Russia.
Hapag Lloyd, a German shipping company, stated that it had temporarily suspended bookings for Russia. It also halted sailings to Ukraine.
MSC, a shipping company has stopped booking cargo to or from Russia. However, it will continue to accept humanitarian and food cargoes.
Kuehne und Nagel, the Swiss logistics firm, has suspended all Russian imports with indefinite effect. It does not apply to humanitarian, medical and healthcare supplies.
TECH
Apple (NASDAQ: ) has suspended all sales of products in Russia.
Google’s Alphabet (NASDAQ) announced that it had removed Russian-language apps from the Play Store. This follows an earlier decision to ban Russian state media outlets from its news-related services.
Microsoft (NASDAQ: ) stated that it would take the mobile apps of state-owned RT from Windows Apps and banning advertisements related to Russian state media.
Dell Technologies (NYSE 🙂 announced it had stopped selling products in Russia and Ukraine by laptop manufacturer Dell Technologies.
TELECOMMS
Ericsson, the Swedish company that makes telecom equipment in Sweden (BSS:), is stopping its delivery to Russia because of potential sanctions.
Nokia (NYSE 🙂 will cease deliveries to Russia as a result of sanctions. It supplies MTS in Russia and Vimpelcom, Megafon, Tele2 and Megafon in Russia.
OTHER SECTORS
Finnish tire manufacturer Nokian Tyres has moved production from Russia to Finland, and vice versa.
A spokesperson from Nokian stated that Nokian makes approximately 80% in Russia of its 20 million-tyre annual capacity. The company employs roughly 1,600 people.
From March 1, 2018, the Finnish chemical company Kemira stopped delivering to Russia and Belarus.
Adidas, the German sportswear brand has suspended their partnership with Russian Football Union (OTC) immediately.
Nike (NYSE: ) made it impossible to purchase merchandise in Russia via its app or website, as the company cannot deliver goods to Russia.
Electrolux, a Swedish manufacturer of home appliances, has halted operations in Russia.
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