Saturday, August 13, 2022

These companies cut Russia operations and trade as sanctions tighten

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Companies have taken action to limit, put on hold or exit business activities in Russia following a wave of sanctions imposed after Moscow’s invasion of Ukraine.

Below is a list of companies that have announced plans to exit Russia or to curb activities there:

AUTOMAKERS

Daimler Truck said it would freeze its business activities in Russia straight away, including its cooperation with Russian truck maker Kamaz. Its pre-spinoff parent company, Mercedes-Benz Group, is looking to divest its 15% stake in Kamaz as soon as possible.

General Motors and Sweden’s Volvo Cars have suspended vehicle exports to Russia until further notice.

Truck maker AB Volvo, a separate group from Volvo Cars, is halting production and sales in Russia.

Japan’s Mitsubishi Motors said it may suspend production and the sale of its cars in Russia.

French carmaker Renault will suspend some operations at assembly plants in Russia next week.

Harley-Davidson Inc said it had suspended its business and shipments of its bikes to Russia.

Ford Motor Co suspended operations in Russia until further notice.

British luxury carmakers Jaguar Land Rover and Aston Martin have paused vehicle shipments to Russia.

Germany’s BMW has halted the export of cars to Russia and said it would stop production there.

Honda Motor said it has suspended automobile and motorcycle exports to Russia.

Japan’s Mazda will suspend exports of auto parts to its Russian plant, Nikkei reported on Tuesday.

AVIATION

The world’s biggest aircraft leasing company Dublin-based AerCap Holdings, ceased leasing activity with Russian airlines.

US manufacturer Boeing suspended parts, maintenance and technical support for Russian airlines.

Airbus stopped sending spare parts to Russia and supporting Russian airlines, but is analyzing whether its Moscow engineering centre can continue to serve local customers.

Lufthansa’s Technik unit, which provides maintenance, has ceased services for Russian customers.

BANKS

Global bank HSBC is winding down relations with a host of Russian banks.

Nordic lender Nordea has suspended trading in investment funds heavily exposed to Russia.

Raiffeisen Bank International (RBI) is looking into leaving Russia, two people with knowledge of the matter told Reuters. A spokesperson said RBI had no plans to quit Russia.

Dubai’s Mashreqbank has stopped lending to Russian banks and is reviewing its exposure, two sources familiar with the matter told Reuters.

ENERGY

France’s TotalEnergies said it would no longer provide capital for new projects in Russia.

BP is abandoning its 19.75% stake in Russian oil giant Rosneft, while Shell said it would exit all its Russian operations.

Norwegian energy group Equinor will start divesting its joint ventures in Russia.

Denmark’s Orsted has stopped buying Russian coal and biomass but will continue its long-term natural gas contract with Gazprom.

Exxon Mobil will exit Russian oil and gas operations that it has valued at more than $4 billion.

Italian energy group Eni plans to sell its stake in a pipeline carrying Russian gas to Turkey.

Austrian energy group OMV scrapped plans to take a stake in a Gazprom gas field project and is reviewing its role in the Nord Stream 2 gas pipeline.

Centrica, owner of Britain’s largest energy supplier British Gas, will exit its gas supply agreements with Russian counterparts, principally Gazprom.

German turbine maker Siemens Energy suspended new business in Russia.

Global commodities trader, Trafigura said it has frozen investments in Russia and is reviewing its 10% stake in Rosneft’s Vostok Oil project in the Arctic.

Some companies have opted to stay for now.

Halliburton’s Eurasia unit operates in Russia and Ukraine. It warned in February that it could be restricted by US or EU sanctions.

German utility Uniper has a $1 billion exposure to Nord Stream 2. Together with its controlling shareholder Fortum they own 12 power plants in Russia and employ 7,000 people there.

Oilfield services company Schlumberger has a number of deals and agreements in Russia, including with Rosneft, Gazprom Neft and Lukoil

A consortium of Vitol and Mercantile & Maritime bought a 5% stake in Vostok Oil for 3.5 billion euros last year.

FILM AND TELEVISION

Hollywood studios Disney, Warner Bros, and Sony Pictures Entertainment suspended new film releases in Russia.

INDUSTRIALS

Swedish engineering group Sandvik is suspending its operations in Russia, while peer Atlas Copco halted all deliveries to the country.

Finnish engineering group Metso Outotec has temporarily ceased deliveries to Russia.

Norsk Hydro will not enter into new contracts linked to Russian producers until further notice and is looking at potentially freezing existing commercial relations.

Siemens suspended all new business and international deliveries to Russia but will continue local service and maintenance activities in compliance with the sanctions, a company spokesperson confirmed.

LOGISTICS

US-based United Parcel Service Inc and FedEx Corp are halting delivery services to Russia and Ukraine.

Container shipping company Ocean Network Express has suspended bookings to and from Russia.

Shipping group Maersk will temporarily halt all container shipping to and from Russia.

Deutsche Post has stopped DHL deliveries to Russia.

German shipping company Hapag Lloyd has suspended bookings for Russia and halted sailings for Ukraine.

Shipping company MSC has stopped bookings to and from Russia but will still accept food and humanitarian cargoes.

Swiss logistics company Kuehne und Nagel has suspended all shipments into Russia excluding medical, healthcare and humanitarian supplies.

Oil tanker company Frontline is unlikely to transport Russian crude oil, the company’s chief executive told Norway’s E24 business news website.

SPORTSWEAR

Adidas has suspended its partnership with the Russian Football Union with immediate effect.

Nike has made merchandise purchases on its website and app unavailable in Russia as it cannot guarantee delivery.

TECHNOLOGY

Apple paused all product sales in Russia.

Alphabet’s Google has blocked mobile apps connected to Russian broadcasters RT and Sputnik, after earlier removing Russian state publishers from news-related features.

Microsoft said it would remove state-owned RT’s mobile apps from the Windows App store and ban advertisements on Russian state-sponsored media.

Laptop maker Dell Technologies said it had suspended product sales in Ukraine and Russia.

TELECOMS

Swedish telecom equipment maker Ericsson is suspending deliveries to Russia.

Nokia will stop deliveries to Russia to comply with sanctions.

OTHER SECTORS

Finnish tyre maker Nokian Tyres is shifting production from Russia to Finland and the United States.

Finnish chemical company Kemira halted deliveries to Russia and Belarus until further notice.

Swedish home appliance maker Electrolux paused all operations in Russia.

Stora Enso has stopped imports and exports to and from Russia, and production and sales in the country.



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