Russia’s invasion of Ukraine has turned into the largest ground war on European soil since World War II. And along with causing immense loss of human life and destruction across many of Ukraine’s cities, it is roiling the global economic landscape – and causing many of the world’s largest companies to pull out of Russia as the country increasingly becomes a global pariah.
The economic fallout from this conflict is wide-ranging, in part because of both countries’ importance to the commodity markets. Ukraine and Russia are both global leaders in production of food commodities, including wheat and sunflower oil.
Russia is also the world’s No. 3 oil producer, behind only the United States and Saudi Arabia, and on March 8, America moved to ban Russian oil and other energy exports. Meanwhile, Russia dominates the European energy market, as its largest supplier of natural gas, which is used for home heating and power generation.
But another wrinkle has developed: American and international corporations alike are taking note of the global revulsion against Russia’s actions, and many have taken measures to stop doing business in the country. Their actions range from limiting access to services to pulling out of Russia altogether.
We’ll take a quick look at some of the biggest companies to distance themselves from Russia, then provide a table listing all the notable companies that have so far announced they will limit or halt their Russian operations.
Note: Changes are happening quickly, and we’re seeing a pattern of companies announcing relatively minor penalties followed by larger initiatives as the invasion continues.
McDonald’s (MCD) is one of the latest dominoes to fall, announcing March 8 that it would be temporarily shuttering all 850 locations in Russia.
As one of the most visible global companies still operating in Russia as of late, consumer pressure for McDonald’s to follow suit was high. It finally buckled, with CEO Chris Kempckinski writing to employees that “our values mean we cannot ignore the needless human suffering unfolding in Ukraine.”
It’s no small sacrifice, either: Roughly 9% of the company’s annual revenues are derived from Russia and Ukraine. And while McDonald’s has closed is locations, it will still pay its 62,000 employees in Russia, as well as employees in Ukraine from the 100 temporarily closed stores there.
Food and Drink Companies
Also on March 8, Starbucks (SBUX), Coca-Cola (KO) and PepsiCo (PEP) all joined McDonald’s in proclaiming that they would be suspending business operations in Russia.
PepsiCo stands to suffer the biggest financial hit; the company says about 4% of its annual revenues come from Russia. However, …….