Dozens of foreign firms to suspend business, operations in Russia

WASHINGTON/ROME/BERLIN/GENEVA, Mar 9 (PRIME) -- Dozens of foreign companies, including multi-national giants like Coca-Cola, McDonald’s, IBM, and the largest audit companies have decided to suspend their business and operations in Russia, according to statements seen by PRIME on Wednesday.

The largest food companies that decided to suspend their operations, advertisement, sales or investment in the country include Coca-Cola Hellenic, PepsiCo, McDonald’s, Yum! Brands, which owns KFC and Pizza Hut, Unilever, Fazer and Starbucks.

Danone also plans to suspend all investment projects in the country but wants to continue production and sales of dairy products and children foods.

IBM, which previously announced suspension of sales of technologies in Russia, decided to suspend its business activity in the country entirely. Another tech giant that decided to restrict ties with Russia is Amazon, which sopped attracting new clients for Amazon Web Services from Russia and Belarus. Top music streaming platform Spotify restricted the possibility of signing new premium accounts in the country.

The list of the largest international audit companies that also decided to leave Russia includes Deloitte, KPMG, Ernst & Young, and PwC. The Russian units of PwC and KPMG decided to split away from their international networks and continue working in Russia on their own, representatives of the companies said.

The list of clothing brands that decided to suspend operations in Russia includes Prada, Puma, Levi Strauss & Co, Adidas and PVH, which owns brands Calvin Klein and Tommy Hilfiger.

Cosmetics retailers Sephora and Estee Lauder announced suspension of operations of their stores and online sales in Russia.

Retailer of construction materials OBI also plans to stop its business in Russia, as well as tire producer Continental.

International rating agency Fitch Group will also its commercial activity in Russia, including the work on awarding credit ratings.

According to Bloomberg, Swiss producer of luxurious watches and accessories Rolex also decided to join Swatch Group and Richemont in suspension of exports to Russia.

In response to the news, Andrei Turchak, secretary of the General Council of the United Russia ruling party, said that the party had suggested nationalization of facilities and productions of the companies that announced the decisions to leave Russia. Their moves could be considered as premediated bankruptcies due to a political decision with the goal of firing a large amount of Russians.

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