140 Companies That Have Pulled Out of Russia
The list of private businesses announcing partial or full halts to operations in Russia is ballooning, increasing economic pressure on the country.
Russia’s invasion of Ukraine has turned into the largest ground war on European soil since World War II. And along with causing immense loss of human life and destruction across many of Ukraine’s cities, it is roiling the global economic landscape – and causing many of the world’s largest companies to pull out of Russia as the country increasingly becomes a global pariah.
The economic fallout from this conflict is wide-ranging, in part because of both countries’ importance to the commodity markets. Ukraine and Russia are both global leaders in production of food commodities, including wheat and sunflower oil.
Russia is also the world’s No. 3 oil producer, behind only the United States and Saudi Arabia, and on March 8, America moved to ban Russian oil and other energy exports. Meanwhile, Russia dominates the European energy market, as its largest supplier of natural gas, which is used for home heating and power generation.
But another wrinkle has developed: American and international corporations alike are taking note of the global revulsion against Russia’s actions, and many have taken measures to stop doing business in the country. Their actions range from limiting access to services to pulling out of Russia altogether.
We’ll take a quick look at some of the biggest companies to distance themselves from Russia, then provide a table listing all the notable companies that have so far announced they will limit or halt their Russian operations.
Note: Changes are happening quickly, and we’re seeing a pattern of companies announcing relatively minor penalties followed by larger initiatives as the invasion continues.
McDonald's (MCD) announced March 8 that it would be temporarily shuttering all 850 locations in Russia.
As one of the most visible global companies still operating in Russia as of late, consumer pressure for McDonald's to follow suit was high. It finally buckled, with CEO Chris Kempckinski writing to employees that "our values mean we cannot ignore the needless human suffering unfolding in Ukraine."
It's no small sacrifice, either: Roughly 9% of the company's annual revenues are derived from Russia and Ukraine. And while McDonald's has closed is locations, it will still pay its 62,000 employees in Russia, as well as employees in Ukraine from the 100 temporarily closed stores there.
Food and Drink Companies
PepsiCo stands to suffer the biggest financial hit; the company says about 4% of its annual revenues come from Russia. However, while it will be suspending sales and advertising of beverage brands such as its namesake Pepsi, as well as 7Up, it will keep selling baby food, formula, milk and dairy products, citing "the humanitarian aspect of our business."
Coca-Cola is suspending all business in the country, which typically accounts for 1% to 2% of revenues.
Starbucks, which has more than 100 third-party-run locations in Russia, has even less revenue exposure, at less than 1% of annual sales. It will temporarily shutter all of its locations in the country, though it has pledged to provide support to the roughly 2,000 employees impacted by the move.
The world’s most valuable publicly traded company announced on March 1 that it was freezing its business in Russia.
Apple (AAPL) had halted exports to Russia and limited Apple Pay service the previous week, after the U.S. government announced sanctions against Russian banks. But starting March 1, Apple expanded its measures, including halting sales of all products to Russia through the online Apple Store and restricting Russian news outlet apps to use only within Russia.
Soon after, the price for Apple products like iPhones and MacBooks reportedly doubled on the Russian gray market.
For what it’s worth, Statista estimates the Russian market generated roughly $2.5 billion in sales for Apple in 2020 – less than 1% of the company’s $274.3 billion in total revenue for that year.
Netflix (NFLX) is a prime example of how quickly the situation is evolving.
When I started writing this article, Netflix was taking a cautious approach, putting a hold on future projects and acquisitions from Russia. By the time the article was finished, several hours later, Netflix announced it had suspended service in Russia altogether.
No streaming, Russian series that were in production have been halted. And the state-run channels the company was required to carry by the government are offline.
Energy companies have been among the most noteworthy firms taking measures against Russia.
On March 1, the multinational oil and gas giant Shell (SHEL) said it would exit all Russian operations – a permanent move, as opposed to a pause in operations. This includes abandoning Shell’s 27.5% stake in the flagship Sakhalin 2 liquid natural gas (LNG) plant. That plant produced 11.5 million tonnes of LNG annually that was exported to Asian markets including China. Shell also is pulling out of the Nord Stream 2 Baltic gas pipeline, which connects Russia to Germany, and exiting the Salym Petroleum Development, a joint venture with Russia’s Gazprom (OGZPY).
According to Reuters, Abandoning the Russian market could cost Shell around $3 billion. And the Sakhalin 2 and Salym ventures contributed $700 million to Shell’s net earnings in 2021.
Interestingly, on March 4, Shell reportedly bought a tanker full of Russian oil at a record-low discount. After those reports emerged, the company pledged it would use alternatives to Russian oil where possible. Until it is able to find alternative supplies, Shell will donate any profits from Russian oil to a Ukraine aid fund.
Visa and Mastercard
Credit card processors Visa (V) and Mastercard (MA) have suspended operations in Russia, further hobbling the country’s access to the global financial system. It was estimated that in 2020, 74% of credit card and debit card transactions in Russia were made through Visa or Mastercard.
Cards issued to Russian citizens will still work until their expiration date, with Russia’s Mir payment processing system taking over. However, Russian Visa and Mastercard cards will no longer work outside of the country, nor will they function for international online purchases. Non-Russian citizens will not be able to use their cards in-person in Russia, or to buy goods online from Russia.
Other Major Companies Exiting Russia
Each of the following companies has announced some sort of actions against Russia, as of March 24, from a partial suspension of operations to temporary full halts to permanent exits from the Russian arms of their businesses.
|Company Name||Ticker||Publicly Traded in U.S.?|
|Advanced Micro Devices||AMD||Y|
|ASUSTeK Computer Inc||ASUUY||Y|
|Bank of China||BACHY||Y|
|ByteDance (TikTok owner)||N/A||N|
|Delta Air Lines||DAL||Y|
|Deutsche Post AG (DHL)||DPSGY||Y|
|Ernst & Young||N/A||N|
|Hennes & Mauritz (H&M)||HNNMY||Y|
|Industria de Diseño Textil (Zara, Bershka, Massimo Dutti)||IDEXA||Y|
|International Business Machines||IBM||Y|
|Kering (Gucci, Saint Laurent)||PPRUY||Y|
|Live Nation Entertainment||LYV||Y|
|LVMH Moet Hennessy Louis Vuitton||LVMUY||Y|
|McKinsey & Company||N/A||N|
|Mediterranean Shipping Company||N/A||N|
|Niantic (Pokemon Go)||N/A||N|
|Stanley Black & Decker||SWK||Y|
|Tata Motors (Land Rover, Jaguar)||TTM||Y|
|United Parcel Service||UPS||Y|
|Yum! Brands, Inc.||YUM||Y|