Video gaming company Sony along with Nestle, and Philip Morris, decided to join a growing list of multinationals that are shying away and leaving the Russian market on Wednesday, with increasing pressure from the consumers of these companies in the West severely criticise the Russian invasion of Ukraine.
Nestle and Mondeleze International, the world's largest packaged goods company, followed competitors Procter & Gamble and Unilever in discontinuing investment in Russia.
However, the four businesses will continue to provide necessities, with Mondelez hoping to assist keep the Russian food supply "continuous."
However even though cigarette producer Imperial Brands halted operations in Russia, competitor Philip Morris merely announced it would reduce production, while Camel maker British American Tobacco Plc maintained its businesses in Russia were still operational despite the suspension of capital expenditure.
The movie studio of Sony has already stopped new releases in Russia as the company announced on Wednesday that its PlayStation game division will also halt shipments and activities in the country.
"Sony Interactive Entertainment joins the global community in calling for peace in Ukraine," the company said.
Many firms are finding it impossible to function in Russia because to sanctions and a shortage of shipping, as well as consumer and investor pressure, and are describing their decision to stop working in Russia in more realistic terms, rather than criticising the Russian government for fighting Ukraine.
Deere & Co., which had said that it was "deeply saddened by the significant escalation of events in Ukraine," said it had stopped shipping to Russia two weeks ago, and then to Belarus, and would follow US and international sanctions. Caterpillar Inc announced it was suspending operations due to supply chain difficulties and restrictions, while 3M followed suit after re-evaluating its business in Russia.
Nevertheless, the pressure in the West is increasing.
Early in the day, a Rio Tinto official stated the mining giant was seeking to keep Russian fuel flowing to its Mongolian copper mine, but the firm subsequently said it was ending all commercial ties with Russian companies. find out more Hilton Worldwide Holdings and Hyatt Hotels Corp have announced that expansion in Russia will be halted. find out more
In a symbolic gesture, Coca-Cola Co and McDonald's Corp suspended sales in Russia on Tuesday. Foreign enterprises that close down their businesses in Russia, according to a senior member of Russia's ruling party, run the risk of having their businesses being nationalised.
McDonald's estimated that closing its 847 shops throughout the country for a month would cost it $50 million.
Adidas also calculated the cost of reducing its operations, estimating that it would lose up to 250 million euros ($277 million) in sales.
Yum Brands Inc, the parent company of fried chicken behemoth KFC, has announced a halt to investments in Russia, a country that helped the company reach record growth last year.
Carlsberg said that it will stop making its eponymous beer in Russia, but that its Russian Baltika brand would continue to be produced.
"We feel a moral obligation to our Russian colleagues who are an integral part of Carlsberg, and who are not responsible for the actions of the Government," Carlsberg said, adding it was withdrawing financial guidance for the year.
Shopify Inc, an e-commerce business, joined the chorus, announcing that it will cease Russian operations and collect no fees from Ukrainian merchants, noting the plight of millions of Ukrainian migrants.
(Source:www.rappler.com)
Nestle and Mondeleze International, the world's largest packaged goods company, followed competitors Procter & Gamble and Unilever in discontinuing investment in Russia.
However, the four businesses will continue to provide necessities, with Mondelez hoping to assist keep the Russian food supply "continuous."
However even though cigarette producer Imperial Brands halted operations in Russia, competitor Philip Morris merely announced it would reduce production, while Camel maker British American Tobacco Plc maintained its businesses in Russia were still operational despite the suspension of capital expenditure.
The movie studio of Sony has already stopped new releases in Russia as the company announced on Wednesday that its PlayStation game division will also halt shipments and activities in the country.
"Sony Interactive Entertainment joins the global community in calling for peace in Ukraine," the company said.
Many firms are finding it impossible to function in Russia because to sanctions and a shortage of shipping, as well as consumer and investor pressure, and are describing their decision to stop working in Russia in more realistic terms, rather than criticising the Russian government for fighting Ukraine.
Deere & Co., which had said that it was "deeply saddened by the significant escalation of events in Ukraine," said it had stopped shipping to Russia two weeks ago, and then to Belarus, and would follow US and international sanctions. Caterpillar Inc announced it was suspending operations due to supply chain difficulties and restrictions, while 3M followed suit after re-evaluating its business in Russia.
Nevertheless, the pressure in the West is increasing.
Early in the day, a Rio Tinto official stated the mining giant was seeking to keep Russian fuel flowing to its Mongolian copper mine, but the firm subsequently said it was ending all commercial ties with Russian companies. find out more Hilton Worldwide Holdings and Hyatt Hotels Corp have announced that expansion in Russia will be halted. find out more
In a symbolic gesture, Coca-Cola Co and McDonald's Corp suspended sales in Russia on Tuesday. Foreign enterprises that close down their businesses in Russia, according to a senior member of Russia's ruling party, run the risk of having their businesses being nationalised.
McDonald's estimated that closing its 847 shops throughout the country for a month would cost it $50 million.
Adidas also calculated the cost of reducing its operations, estimating that it would lose up to 250 million euros ($277 million) in sales.
Yum Brands Inc, the parent company of fried chicken behemoth KFC, has announced a halt to investments in Russia, a country that helped the company reach record growth last year.
Carlsberg said that it will stop making its eponymous beer in Russia, but that its Russian Baltika brand would continue to be produced.
"We feel a moral obligation to our Russian colleagues who are an integral part of Carlsberg, and who are not responsible for the actions of the Government," Carlsberg said, adding it was withdrawing financial guidance for the year.
Shopify Inc, an e-commerce business, joined the chorus, announcing that it will cease Russian operations and collect no fees from Ukrainian merchants, noting the plight of millions of Ukrainian migrants.
(Source:www.rappler.com)
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