One by one, major companies suspend operations in Russia

Major companies from different sectors around the world have announced the suspension of their operations in Russia one after another due to its war on Ukraine.

During the last week, many sectors in Russia saw suspension decisions, ranging from technology to automotive and energy.

Apart from sanctions, particularly those imposed by EU member states and the US, companies are trying to exert pressure on the Russian economy through their actions.

Technology

The US-based technology giant Apple put a halt to product sales in Russia while limiting Apple Pay and other services in the country.

"We are deeply concerned about the Russian invasion of Ukraine and stand with all of the people who are suffering as a result of the violence," it said.

Another US-based multinational software company Microsoft announced a suspension of all new products' sales and services in Russia.

"Like the rest of the world, we are horrified, angered and saddened by the images and news coming from the war in Ukraine and condemn this unjustified, unprovoked and unlawful invasion by Russia," Microsoft said.

YouTube also decided to block Russian state-run media outlets, Russia Today and Sputnik, while Google blocked their mobile applications from being downloaded.

Computer producer Dell Technologies suspended sales in Russia, while Oracle stopped its operations in the country.

Global credit card providers Visa and MasterCard likewise suspended their operations and relations in the country.

Online payment platform PayPal on Saturday suspended its services in Russia, citing the war in Ukraine.

The "unprovoked invasion of Ukraine and the tragic humanitarian crisis" prompted Disney to halt all film releases in Russia.

Netflix also ceased operations and postponed the production of four Russia-based series.

 

Aviation

Boeing and Airbus, based in the US and Europe, respectively, ceased operations and exports to Russia.

Airbus said in a statement that it is also evaluating whether its technical center in Moscow will be able to serve local customers under Western sanctions.

Lufthansa Technik ceased operations in Russia, while Aercap, the world's largest chartering company, severed ties with Russian airlines.

The European Space Agency also stopped its relations with Russia.

Due to the suspension, the agency's ExoMars program will probably be postponed. The Rosalind Franklin spacecraft, built in the UK, was set to launch on a Russian rocket.

Automotive

Germany-based automotive giants Volkswagen and BMW stopped local production activities in Russia.

BMW said: "We condemn the aggression against Ukraine and follow developments with great concern and dismay."

Volkswagen, which also stopped exports to the country, stated: "Against the background of the Russian attack on Ukraine and the resulting consequences, the Group Board of Management of Volkswagen AG has decided to stop the production of vehicles in Russia until further notice."

Audi, Seat, Scania, Skoda, Porsche, and Volkswagen are all part of the Volkswagen Group.

Toyota, a Japanese automaker, also halted its production operations in the country, stating: "The operations at the St. Petersburg plant will be stopped until further notice."

Toyota's St. Petersburg plant has been producing about 100,000 vehicles per year since it opened in 2007.

Honda Motor Co. of Japan also suspended shipments of vehicles and motorcycles to Russia.

Daimler Truck, which manufactures armored vehicles for the Russian army, ceased all commercial operations in the country, including collaboration with Russia's largest truck and bus manufacturer, Kamaz.

Other companies that announced suspensions in the country include Volvo of Sweden, Ford of the US, Mazda of Japan, Jaguar, Land Rover, and Aston Martin of the UK.

Harley-Davidson likewise suspended operations and deliveries in Russia.


Textile, retail trade

Mango, a Spanish textile retailer, temporarily suspended sales at 120 Russian stores and ceased exports to the country.

Sportswear giant Adidas suspended its partnership with Russian Football Union due to the war.

The German apparel company has been the Russian national football team's kit supplier for more than a decade since their partnership began in September 2008.

Puma and Nike, two major sportswear companies, also ceased operations and deliveries in Russia. Puma alone has 100 outlets in the country.

H&M, one of the largest textile retailers, suspended sales in the country, while Inditex, the owner of Zara, Bershka and Pull&Bear, stopped its services in Russia by closing its more than 500 stores.

IKEA, the Swedish furniture retailer, also halted operations in Russia and Belarus due to the Ukraine war.

Marks & Spencer stopped supplying goods to its franchise stores in Russia as of Saturday.

Energy

The UK's British Petroleum (BP) and Shell stopped their operations in Russia by halting their partnership activities with Russian firms.

Shell's board of directors announced its plans to exit joint ventures with Gazprom and related entities.

"We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security," said Shell CEO Ben van Beurden.

BP announced that it will sell its stake in Rosneft, a Russian state-owned oil company, after coming under pressure from the government.

"Russia's attack on Ukraine is an act of aggression which is having tragic consequences across the region,” BP Chairman Helge Lund said.

Norway's energy giant Equinor agreed to begin exiting joint ventures in Russia and halt new investments in the country.

"We are all deeply troubled by the invasion of Ukraine, which represents a terrible setback for the world, and we are thinking of all those who are suffering because of the military action," said Anders Opedal, Equinor's president and CEO.

French Total Energies, the US-based ExxonMobil, Italian energy group Eni, Germany's Siemens Energy, Singapore-based commodity firm Trafigura, and Switzerland's Glencore all announced suspension of their activities or investments in Russia.

Industry

Sandvik, a Swedish engineering firm, ceased operations in Russia, while Atlas Group, a Swedish manufacturer of industrial vehicles and equipment, stopped deliveries.

Finland's engineering group Metso Outotec also stopped deliveries in Russia.

Norsk Hydro, a Norwegian company operating in the aluminum and renewable energy sectors, said that it will no longer deal with Russian producers and will suspend its current agreements.

Siemens, a German-based industrial giant, likewise ceased supplies in the country but will continue local repair and maintenance services.

Cargo

The US-based FedEx and UPS suspended deliveries to Russia due to the war.

The world's largest container delivery firm Maersk also suspended all deliveries to and from Russia.

Deutsche Post stopped deliveries to Russia, and German shipping company Hapag Lloyd suspended reservations.

MSC, another container giant, likewise halted all load delivery operations, with the exception of humanitarian relief and medical supplies./aa

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