Companies Halt Russian Ties Amid Sanctions, Export Controls
A host of companies announced plans to stop exporting to or doing business in Russia and Ukraine due to Russia’s military invasion, including U.S. global car manufacturers and financial and energy companies. The decisions came as the U.S. and allies increased sanctions and export controls against Russia (see 2202280043) and 2202240069).
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Automakers GM, Sweden’s Volvo and Germany’s Daimler Truck and Volkswagen plan to suspend business operations in Russia, Reuters reported Feb. 28. GM said it will stop all vehicle exports to Russia, which includes about 3,000 vehicles per year, the report said. Volvo said it sold about 9,000 cars in Russia last year and will also halt all exports.
Shell and BP both announced plans to divest from Russian energy companies. Shell said Feb. 28 it will “exit its joint ventures with Gazprom and related entities,” and BP said it will exit its stake in Rosneft. Both Russian energy companies are subject to U.S. sanctions.
Mastercard recently said it has blocked "multiple financial institutions" in Russia from its payment network due to U.S. sanctions and "will continue to work with regulators in the days ahead to abide fully by our compliance obligations as they evolve." Visa also said it is taking "prompt action to ensure compliance with applicable sanctions, and is prepared to comply with additional sanctions that may be implemented."
Although Nike hasn't officially stopped shipments to Russia, the company said it "currently cannot guarantee product delivery to purchasers" in Russia, according to an unofficial translation of a statement posted on their Russian-facing website. It said all online Nike purchases are "temporarily unavailable in this region."