Richa Naidu, Jessica DiNapoli

(Reuters.) – Western businesses that are present in Russia in order to supply essential goods, such as medicines and food, try to balance President Vladimir Putin’s government with advocates for Ukraine.

According to Jeffrey Sonnenfeld (a Yale School of Management professor), more than 400 companies have fled Russia since Russia launched its attack against Ukraine on February 24. Their assets, worth hundreds of millions of dollars each before the attack on Ukraine by Russia’s special military operation (Russian: “special military operations”) have been left behind.

Around 80 businesses have maintained a presence despite the fact that they stopped new investment or business ventures. Many of these companies include pharmaceutical and consumer firms that feel that pulling out could significantly impact the Russian population. Others are concerned about the legal consequences for employees in Russia if the Russian government responds.

Bruce Haynes is the global co-chair of crise communications at SVC+FGH and has advised companies regarding their exit from Russia.

Consumer goods giants such PepsiCo Inc, Procter & Gamble (NYSE:) Co and Nestle SA (SIX:) have said they will retain a presence in Russia to provide basic items for nutrition and hygiene, such as milk and diapers.

As the number of refugees and casualties from conflict in Ukraine rises, Russia is under increasing pressure to leave.

Aron Cramer (BSR Chief Executive), who consults on corporate governance, ESG and environmental issues, said that “barring a turnaround which we don’t yet see”, the pressure to pull out is growing.

Katie Denis is the communications and research leader at Consumer Brands Association. This trade association counts. Pepsico (NASDAQ:), Coca-Cola (NYSE:) and P&G among its members, said its members by-and-large did not support Russia’s actions in Ukraine, but that uninvolved Russian people should not be made to suffer for it.

There are many pharmaceutical companies like Pfizer Inc (NYSE:), Germany’s Bayer AG Eli Lilly (NYSE) and (DE:), have announced that they will cease all non-essential Russian operations, but intend to keep supplying medicines for cancer and diabetes. Prescription medicines are exempted from international sanctions as they fulfill an essential human need. In recent times, however, these goods are being scrutinized.

Volodymyr Zelenskiy, the Ukrainian president, urged all pharmaceutical companies this week to withdraw from Russia. Sonnenfeld has called for the same thing. His list was seized by human rights activists in order to press global companies into leaving Russia.

Some drug companies are supported by their shareholders. Josh Brockwell is an executive with Azzad Asset Management and said that he supports Pfizer’s decision to continue supplying Russia. Brockwell stated that he did not think people should be punished for the actions taken by the Russian government.

Many U.S.-based pharmaceutical firms claim that they do not manufacture drugs in Russia. However, European competitors, like Bayer (OTC), and Novartis SA of Switzerland, still have plants there.

PROFITS FROM RUSSIA CARVING

Putin stated last week that Russia may seize the assets of any company which abandons operations within Russia. A source close to the situation said that Russian prosecutors had warned Western companies about possible arrests of their workers, in case they stop producing essential goods.

Kingsley Wheaton, Chief Marketing Officer at British American Tobacco (NYSE) told Reuters last Wednesday that Russia would consider any attempt to exit its business or stop the production of its products as a criminal bankruptcy and could lead to the prosecution of the company’s employees.

Processing transactions in Russia under bank sanctions, and securing raw materials are two other challenges that consumer businesses still have to face, according Jack Martin (a fund manager at Oberon Investments), which owns shares in Unilever. Diageo (LON:), Burberry. GSK. Eli Lilly. Nike (NYSE:).

Martin stated that Russia’s investment risk premium has increased.

All sides are being listened to by companies. Novartis Bayer Pfizer, Pfizer, Eli Lilly and others said, among other things, that any profit from Russian Russia sales would be set aside to aid humanitarian needs.

While some companies remain in Russia, others are looking for parties that will buy their operations or take them over. British America Tobacco’s Wheaton stated that his company is trying to accomplish this “rapidly.” Wheaton stated that the Russian distributor could be interested.

Companies are concerned about the fate of their assets if they go away. Russia could use an abandoned food plant to provide troops in Ukraine with supplies, as one example.

Investors are asking companies to think carefully about whether they might be paying taxes that could indirectly finance the war. Federated Hermes’ director of engagement, Hannah Shoesmith (NYSE:), said last week that companies should “think carefully” about the taxes they pay to Russia and whether the risks associated with providing the services and products they offer are worth it.

Expropriation of assets or property may prove difficult for companies that have left Russia. Tiffany Compres of law firm FisherBroyles said that while companies could sue Russia at international venues, like the International Center for Settlement of Investment Disputes (ICSID), these cases can go on for many years and Russia will not be forced to make any payments.

Compres explained that Russia, even if they win the claim is not paid.