REX TILLERSON DID CORRECTLY CALL THE PRESIDENT AS HE SAW HIM

 ALL THE COMPANIES LEAVING RUSSIA

 

                              …Subway is one company staying in Russia….so far.

 

400 International companies are getting out of Russia

 

It’s really amazing that with all the issues of what Russia is doing in Ukraine, there are some U.S. companies that are continuing to do business in Russia.  This is even though there are many such as McDonalds, American Express, Mastercard, Visa, Ford, GM, Nissan, Mazda, Toyota, BP, Exxon Mobil and Hyundai.  Also Walt Disney, Warner-Media and YouTube, who have pulled out for now.

There are 34 companies that are “digging-in” and defying demands for exit or reduction of activities.  (More than 400 international companies have taken firm steps to withdraw from the Russian market.)

The” digging in” ones include: Subway, Rebok, Bacardi, (makers of its Rum, Dewar’s Scotch, and grey Goose Vodka. Amongst other brands.) also LG. Asus and Natura-(Owner of Avon products).

The conservative Koch Brothers, owners of Koch Industries, they are well-known for their support of far-right politicians, and they employ 600 workers at two glass factories in Russia.  As expected, they will continue to operate in Russia.  Their excuse is that they will not walk away from their employees, even though their business is in products made directly for the Russian government.  The same Russian government that is bombing and destroying the cities and killing the innocent people of Ukraine.

Subway sandwiches however says the reason for their 450 stores is they are independently owned and operated by local franchisees.  Other companies with problems like Subway’s have offered to buy-out their franchisees or licensees so they can exit Russia.

Yale’s business professor, Jeffery Sonnenfeld,  calls the list of those “digging in” members of the “Hall of Shame”..  Sonnenfeld doesn’t buy Subway’s excuse.  Allusions of the well-being of their employees are, “A cover for cowardice.  It’s not a true humanitarian impulse, it’s just recast that way.  These are empty, cynical messages about giving a couple of pennies to refugees from Ukraine and saying that their hearts are with them”.

The companies that are “digging in” the most are the three major oilfield services firms, all based in Houston, Texas.  They include: Halliburton, Baker Hughes and Schlumberger.  Neither the U.S. nor E.U. has ordered these oilfield companies to withdraw. 

Among the 400 companies that have taken firm steps to withdraw from the Russian market, 150 have made totally clean breaks from the Russian market.  These include law firms, consulting and accounting firms.  Many of the companies have left open the idea of re-entering the Russian Market.  This of course, will not occur as long as Russia continues its attack on the Ukraine

There are still 74 U.S. companies that are scaling back some, but not all activities or they are deferring any new investments.

There are 178 of these companies that are instead of pulling out 100%, they are suspending their operations.  They include aircraft manufacturer Airbus and financial companies such as American Express, Visa and Deutsche-Bank.  Also Automakers Ford, GM, Nissan, Mazda, Toyota, and Hyundai, and entertainment companies: Walt Disney, Warner-Media and YouTube.

These companies have left open the possibility of returning, but a recent point of entry will not happen as long as the Russian continue to attack Ukraine. 

Among those companies that are departing or suspending their Russian activities are some that were closely identified with the 1990’s-era opening of the Russian consumer market to the west.  McDonalds, which started their "gold rush" approach with the opening of its first  Moscow restaurant in 1990.  But they are closing 840 stores for now.

Even Pizza Hut is suspending their services at 50 stores.

“The leadership and constituencies of at least 400 global companies should feel great pride in their Russian exits,” they wrote  “Then there are those other 34 companies.”

Copyright G. Ater 2022