The actual situation of the Ukrainian invasion company leaving Russia is 15:51 on March 25

It's been a month since Russia invaded Ukraine.

As the international community has increasingly criticized Russia, the movement to "leave Russia" is spreading, especially among Western companies.

According to the summary of Yale University, about 450 companies and organizations in the world have announced that they will take some measures as of the 24th.

On the other hand, some companies cannot stop doing business in Russia.

We have added new information to the article published on the 18th of this month and summarized the back side of each decision.

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 the sale of smartphones, which have the largest market share in the Russian market.

(Other major companies)

・ Suspended all new sales of services and products in Microsoft Russia ・ Suspended

advertising services on Google search sites and YouTube

・ Suspended delivery of products to Amazon Russia and 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 Closed 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 disruptions.

(Other major companies)

・ Chanel temporarily closed stores in Russia ・ Suspended product delivery and online sales to

Russia ・ Suspended store sales in Prada Russia ・ Suspended sales in

H & M Russia

・ Nike in Russia Suspended order acceptance

[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

-Volvo Suspension of local production of his trucks and export of passenger cars to Russia

-Boeing Suspension of 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 procedures for withdrawal.

・ TotalEnergies from Russia at the latest by the end of the year Announced suspension of purchase of all petroleum and petroleum products

Some companies cite the impact of information control

Some companies that suspend their Russian operations cite the tightening of information controls.

・ Stopping TikTok video posting service

Employees and users are disadvantaged by Putin's signing of a bill to amend the law to impose penalties on individuals and groups who intentionally spread false information about Russian military activities It is said that consideration was given to the risk of suffering from.

・ Netflix Suspended services in

Russia Declared that it will not comply with Russia's new law that obliges video distribution service companies of a certain size or larger to distribute broadcasts such as government-affiliated TV stations.

Behind the judgment, there is also pressure from shareholders and society

A company that condemns Russia's military invasion and declares a business suspension.

There are also complicated circumstances behind that decision.

Four days before announcing the temporary closure of a store in Russia, a letter was sent to McDonald's.

"Companies that continue to do business in Russia will face reputation risk = reputational damage," he said, urging them to consider suspending their business.

The letter was issued by a shareholder, the New York State Pension Fund.

It is the largest public pension in the United States with total assets of over 34 trillion yen in Japanese yen.

In the United States, many people ask companies to take strict measures against Russia, and one survey says that three-quarters support a local business suspension.

McDonald's still continues to pay salaries to more than 60,000 local employees, and it is reported that the cost is about 6 billion yen a month.

It is believed that the pressure of shareholders and society also acted on the background of the decision to temporarily close the company even with such a burden.

At the request of President Zelensky

Some companies have been asked to leave Russia directly from Ukraine.

Ukrainian President Volodymyr Zelensky, who spoke at the French Parliament on the 23rd of this month, named French companies such as Renault, a major automobile manufacturer that continued to operate in Russia, saying, "We should withdraw from the Russian market immediately. In the Russian war. We should stop funding to help and kill children and women. "

Ukrainian Foreign Minister Kreva also called for Renault's boycott on Twitter.

In response, Renault announced on the same day that it would suspend operations at its Moscow plant, and said it would consider revising its joint venture with a Russian automaker under the group.

The situation of companies continuing in Russia

On the other hand, some companies have not participated in the move away from Russia.

Cloudflare, a US cyber security company, claims that by continuing to protect data in Russia from cyber attacks, Russian citizens will be able to obtain various information and criticize the government through SNS. increase.

Some fast food chains cannot stop doing business in Russia.

One of them is Burger King.

While continuing to operate at 800 stores in Russia, the company has been criticized as saying, "I will never eat again" and "This company seems to be more important to business than human life."

However, Russian stores are not directly managed but have franchise agreements, and there are independent owners locally.

Since the business cannot be stopped unless the owner accepts it, we decided to take measures such as not making new investments that the company can make.

Kentucky Fried Chicken and Subway have the same situation.

A lawyer who

is familiar with the franchise business

There will be cases where it will not proceed. "

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 Russia local production ・ Suspension of import of finished vehicles to Russia

・ Nissan Motor Local production in Russia ・ Suspension of import of finished vehicles to Russia

・ Panasonic In principle, transactions with Russia Suspension

・ Komatsu Suspended shipment to Russia for the time being

・ Hitachi, Ltd. Suspended export to Russia and operation of Russian manufacturing bases excluding electric power equipment

・ Suspended shipment of Sony Group game machine “PlayStation” and software to Russia.

Online store for Russia also stopped operation

・ Nintendo Suspended sales at online shop for

Russia ・ Shiseido Suspended export shipment to Russia, suspension of advertising in Russia, etc.・ Suspended

export shipment to Kao Russia ・ Advertising activities stopped (women and (Continued only for products that can maintain the hygienic life of infants at a minimum)

・ First Retailing UNIQLO's Russian business suspended

・ Yokohama Rubber Suspended production of

tires in Russia ・ Bridgestone Suspended production of tires in Russia

・ JT = Japanese tobacco Industry Cancel new investment and advertising in Russia

The impact on Japanese companies

There are various reasons why companies have reviewed 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 there is any prospect of easing economic sanctions on Russia, 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 properly allocate resources and resources, even Japanese companies may be forced to shrink or withdraw from their businesses. "

Russia strongly opposes

President Putin is strongly opposed to the company's departure from Russia.

He said on the 10th that he "needs to take a firm stand against companies that stop production," and said he would take the assets of foreign-affiliated companies that 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. "