"Russia away" of companies spreading due to invasion of Ukraine March 18, 18:38
Three weeks have passed since Russia invaded Ukraine.
As the international community criticizes Russia for a long time, there is a growing movement among Western companies to "leave Russia".
Japanese companies that have continued to do business in Russia are also under pressure.
According to the summary of Yale University, more than 400 companies and organizations in the world have announced that they will take some measures as of the 17th.
I summarized the latest situation.
One after another the world's leading companies
Moving away from Russia are large, world-renowned companies.
It extends to all industries, from IT, fashion, manufacturing to finance.
[IT]
Apple, an American IT giant, stated on the 1st of this month that it "has deep concerns about Russia's invasion of Ukraine."
Announced the cancellation of sales of all products including smartphones, which have the largest market share in the Russian market.
(Other major companies)
-Microsoft Stopped all new sales of services and products in Russia.
・ Suspended advertising services on Google search sites and YouTube.
・ Delivery of products to Amazon Russia and suspension of acceptance of cloud service contracts.
[Eating out / food]
McDonald's, a major American hamburger chain, announced on the 8th that it will temporarily close about 850 stores in Russia, saying that it is "causing indescribable suffering to innocent people in Ukraine."
Many people visited the Moscow store before it closed, and there was a long line outside the store.
(Other major companies)
・ Starbucks Shut down at least 100 stores in Russia.
・ Coca-Cola Suspended all businesses in Russia.
[Furniture / Fashion]
IKEA, a major furniture company originating in Sweden, announced on the 3rd that it will suspend the operation of stores in Russia.
Product exchanges with Russia have also stopped.
He blamed the military invasion and also complained of serious supply chain and trade turmoil.
(Other major companies)
・ Chanel Temporarily closed stores in Russia Stopped product delivery and online sales to Russia.
・ Prada Stopped store sales in Russia.
・ H & M Suspended business in Russia.
・ Nike Suspended accepting orders in Russia.
[Cars / Aircraft]
Volkswagen, a major German car maker, described the military invasion as "great disappointment and shock" and announced that it would stop production of cars at its two factories in Russia.
Exports of cars to Russia have also stopped.
(Other major companies)
-Ford Suspension of joint venture in Russia.
-Stopd local production of Volvo trucks and export of passenger cars to Russia.
・ Boeing Suspended aircraft maintenance and technical support for Russian airlines.
[Credit Card / Finance]
Major American credit card companies, Mastercard and Visa, announced on the 5th that they will suspend their card business in Russia.
It is no longer possible to settle the cards of both companies issued by Russian financial institutions.
Cards issued in other countries can no longer be used in Russia.
(Other major companies)
-Goldman Sachs is the first major financial institution in the United States to announce its withdrawal from the Russian business.
[Energy]
Shell, a major British oil company, announced on the 8th that it will end the procurement of crude oil and natural gas and completely withdraw from the Russian business.
He explained that he was "not the right decision" to buy crude oil from Russia after the military invasion.
(Other major companies)
・ ExxonMobil Announced that it will suspend the operation of the oil and natural gas development project “Sakhalin 1” off the coast of Sakhalin in the Russian Far East and start the procedure for withdrawal.
Some companies cite the impact of information control
Some companies that suspend their Russian operations cite the tightening of information controls.
・ Stopped the TikTok video posting service.
Putin's signing of a bill to amend the law to impose penalties on individuals and groups that deliberately disseminate false information about Russian military activities has taken into account the risk of disadvantages for employees and users. There is.
・ Netflix Suspended service in Russia.
It has stated that it will not comply with the new Russian law that requires video distribution service companies of a certain size or larger to distribute broadcasts such as government-affiliated TV stations.
Japanese companies are also forced to respond
As the situation worsens over Russia's military invasion, there is a growing movement among Japanese companies to suspend production and exports in Russia.
(Main movements of Japanese companies)
・ Toyota Motor Corp. Local production in Russia ・ Suspension of import of finished vehicles to Russia.
・ Nissan Motor Stops local production in Russia and imports of finished vehicles to Russia.
・ In principle, transactions with Panasonic Russia will be suspended.
・ Komatsu For the time being, shipping to Russia will be postponed.
・ Hitachi will suspend exports to Russia and operations at Russian manufacturing bases excluding electric power facilities.
・ Shipment of Sony Group game console "PlayStation" and software to Russia has been suspended.
The online store for Russia has also stopped operating.
・ Nintendo stopped selling at the online shop for Russia.
・ Shiseido Stopped export shipments to Russia and stopped advertising in Russia.
・ Stopped export shipments and advertising activities to Kao Russia (only products that can maintain the hygienic life of women and infants at a minimum).
・ Fast Retailing Suspended UNIQLO's Russian business.
The impact on Japanese companies
There are various reasons for companies to review their businesses, such as logistics disruptions and uncertain economic conditions.
In February, immediately after the start of Russia's military invasion, JETRO = Japan External Trade Organization asked multiple answers about the impact on business in Russia, and the results were as follows.
▽ Impact on sales price due to the fall of the ruble (71%)
▽ Difficulty in overseas remittance and payment settlement (52%)
▽ Logistics confusion other than customs clearance (40%)
(Questionnaire was conducted for about 210 companies . 89 companies answered)
The chief academic officer in charge of Russia and CIS of the JETRO Overseas Research Department, who conducted the survey, points out that some companies may decide to reduce or withdraw from the local business in the future.
"I don't think the relaxation of economic sanctions on Russia is uncertain, and it is not easy to overturn the negative image that has once taken root. It is limited due to the disruption of the supply chain
.
In terms of how to allocate resources and resources well, some companies may be forced to shrink or even withdraw. "
Russia strongly opposes
President Putin is strongly opposed to the company's departure from Russia.
On the 10th, he said, "We need to take a firm stand against companies that stop production," and expressed his intention to make the assets of foreign-affiliated companies that have decided to withdraw to the Russian side.
President Putin's reaction is analyzed by Daisuke Saito, director of the Moscow office of the Russian NIS Trade Association, as a strong restraint to stop the flow away from Russia in order to maintain employment and social stability. increase.
Saito also sees the outlook for business in Russia as bleak.
Director Daisuke Saito
"Depending on future sanctions and countermeasures against Russia, there is a high possibility that a strict decision will be required to withdraw from the business. More companies will decide to withdraw, mainly those that sell products. In the worst case, it will be reduced to nearly half. "