Spotify became the latest Western companies to suspend operations in Russia following President
Vladimir Putin’s invasion of Ukraine.
The German car manufacturer announced on Thursday that it would suspend production of vehicles in Russia until further notice, including at its production sites in Kaluga and Nizhny Novgorod. The company also will paused car exports to Russia immediately.
ACN) also is discontinuing its business in Russia, calling for an end to the “unlawful and horrific attack on the people of Ukraine and their freedom” in a press release on Thursday. The company said it would provide support to its 2,300 Russian employees.
Spotify said Thursday it had closed its Russian office indefinitely, and had restricted content created by Russian state media, according to The Wall Street Journal. Earlier this week, it removed content from Russia’s state-backed RT and Sputnik in international markets. The service is still available in Russia, the company said.
Around 75% of Americans said they supported companies cutting business ties with Russia and stopping sales of products, according to a survey released over the weekend by Morning Consult.
Cutting ties may be a savvy move for the companies whose primary markets are in the US, given that the Russian market may not be as crucial for most companies, wrote Jeff Buchbinder, equity strategist for LPL
“The amount of trade between Russia and the United States is negligible,” he wrote. The US imports “almost nothing” from Russia, he added, calculating that the percentage of revenue generated by
companies in Russia could be even lower.
It may have a bigger effect on the energy sector, or on European companies, Buchbinder added.
Volkswagen and Spotify join a growing list of companies that have decided to pull out of Russia. The list is expansive, and includes some of the largest names across a myriad of industries, from Big Tech and entertainment to oil and financial services.
Here’s a rundown of some of the companies across different sectors that have left Russia.
AAPL) confirmed Tuesday it had paused its sales of its products in Russia and restricted downloads of its apps. that same day,
Snap said it had stopped all advertising in Russia, Belarus, and Ukraine, but would continue to run the app as it is an “important communications tool.”
Social media platforms were taking a similar approach to Spotify, with
FB) saying Monday it would also restrict access to Russian state-owned media accounts RT and Sputnik, according to the Journal. TikTok, the popular short-form video app, will take a similar approach, while
TWTR) began to labl tweets linking to sources affiliated to the Russian state to limit their reach.
In addition to Volkswagen,
TM) said on Thursday it would stop production at its St. Petersburg plant starting March 4, and has stopped exporting vehicles into Russia until further notice. The company had suspended all activities in Ukraine since Feb. 24.
XE: BMW), and
General Motors (
GM) have also suspended operations.
XOM) said it would begin the process of discontinuing operations of the Sakhalin-1 project, a venture the company operates on behalf of a consortium of Japanese, Indian, and Russian companies. Exxon would also halt new investments in new developments in Russia, the company said on Tuesday.
“In response to recent events, we are beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture,” the company said in a statement.
SHEL) said it would exit its joint ventures with Russian energy giant Gazprom, as well as its involvement in financing the Nord Stream 2 pipeline project. The announcement came a day after
BP) said it would divest its stake in Russian energy company Rosneft. Norwegian company
EQNR) also said it would start exiting its Russian joint ventures.
Media and Entertainment
DIS) is pausing the release of its theatrical films in Russia, including the upcoming Pixar movie “Turning Red.”
AT&T‘s (T) WarnerMedia is also delaying the release of “The Batman,” which was scheduled to release on Friday.
Sony Pictures said late Monday it would also pause theatrical releases, including its latest Marvel film “Morbius.”
Swedish furniture company IKEA on Thursday said it had paused production operations in Russia, as well as exports and imports. The company has also announced €20 million for humanitarian assistance to Ukraine.
TJ Maxx parent company
TJX) announced it was divesting its equity ownership in Russian retail chain Familia, and said it didn’t have any sales in Russia or Ukraine.
TJX‘s investment in familia was $186 million. Two of the company’s senior executives, Doug Mizzi and Scott Goldenberg, have resigned from Familia’s board, the company said in a filing with the Securities and Exchange Commission.
H&M Group (HNNMY) said on Wednesday it had temporarily suspended sales in Russia, and closed stores in Ukraine due to the safety of customers and colleagues.
Purchases on the Russian
NKE) app and website were unavailable, given that the company could not guarantee product delivery to purchasers in Russia, the company said on its Russian website.
Visa (V) said the company was “taking prompt action to ensure compliance with applicable sanctions,” and was prepared to comply with any additional sanctions.
MA) said it had blocked multiple financial institutions from the Mastercard payment network.
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