March 4 – Russia has said it will shut down Facebook for not involving state media and CNN said it would stop broadcasting in Russia after a new law banning “false news” sparked Moscow’s dispute with a foreign organization.
Friday saw an escalation of tensions that began after the Ukrainian invasion. Russia has blocked a wave of media companies with new names, hundreds of which have announced they are closing down Russian sales, including Microsoft Corp (MSFT.O) and video game maker Electronic Arts Inc (EA.O). Learn more
Russia has said Meta Platforms Inc’s (FB.O) Facebook has been banned from providing government-sponsored channels, and has also shut down websites of the BBC, Deutsche Welle and Voice of America for what it said was a lie about the Ukrainian war. read more Twitter (TWTR.N) will also be banned, Russian media reported.
The BBC has said it will suspend its operations in Russia after the introduction of a new law that could detain anyone found deliberately spreading “untrue” news. Learn more
AT&T Inc’s (T.N) CNN is stopping broadcasts to “check the status and our next steps forward,” a spokesman said.
Meta’s head of international affairs, Nick Clegg, said the company would continue to do everything possible to restore its resources.
“Soon millions of ordinary Russians will find themselves cut off from reliable information, deprived of their daily routines of family and friends and silenced,” he said in a statement posted on Twitter.
Many Russians have downloaded VPN software to avoid country restrictions, but Internet provider Cogent (CCOI.O), who claims to be the second largest from Russia, has revealed plans to disconnect the service, in part to avoid the use of cyber attacks. Learn more
A large number of Western products in a wide range of industries are out of Russia. Some celebrities have strongly rebuked Moscow for its Ukrainian invasion. Others described the reaction to the situation, including the luxury goods manufacturer LVMH (LVMH.PA) which on Friday temporarily closed 124 shops in Russia. Learn more
Canadian Tire (CTCa.TO) has also announced that it will temporarily close 41 Russian stores of its foreign goods group Helly Hansen and cargo, and private jet company Bombardier Inc has said it has suspended all operations with Russian customers, complying with international law. Learn more
Shipping and supply-chain problems have made it difficult to work in Russia. Companies building Royal Dutch Shell to Apple Inc (AAPL.O) to Toyota Motor Corp (7203.T) have taken steps from stopping sales and operating to a complete exit. Agricultural commodity trader Louis Dreyfus announced the suspension of operations in Russia on Friday.
THERE ARE NO CRYING ANSWERS
Russia’s Deputy Prime Minister Andrei Belousov set out the options for foreign companies on Friday: stay in the country, completely evacuate or give local authorities their assets until they return.
There is no safe route. Those who stay may face a slowdown in Western markets where the public has met with the Ukrainian cause, those transfers may offer keys with fewer guarantees, while those who leave may face greater losses, or may have to sell less. total.
“It’s a complex process,” said Darren Woods, chief executive of the American power company Exxon Mobil Corp (XOM.N), which comes out of oil and gas investments that include partnerships with Russia’s Rosneft (ROSN.MM) and others worth $ 4 billion. Learn more
Companies have had little time to prepare.
Russia’s attack – which Moscow calls “a special operation” – has prompted the United States and Europe to impose quick and sweeping sanctions, affecting everything from international payment systems to a range of high-tech products. Learn more
“Western companies have probably never lost so much money so quickly because of politics since Shah was overthrown in Iran,” said Renaissance Capital economist Charlie Robertson, referring to the Islamic revolution over the past 40 years that led to the Western exit. businesses.
STAYING SET
However some companies plan to continue. Italian tire manufacturer Pirelli (PIRC.MI) said it had set up a “disaster committee” to monitor the situation but did not expect to halt production at one of their two Russian plants.
At packaging companies, Russia’s first deputy prime minister said the immediate evacuation plan would “support the employment and well-being of citizens so that honest businessmen can ensure business success.”
To date, international corporations, banks, and investors have announced that they have somehow been exposed to more than $ 110 billion in Russia. That amount could go up. Learn more
BASF SE (BASFn.DE), the world’s largest chemical group, has stated that it is setting up new businesses in Russia and Belarus, excluding food production for personal reasons. It also exposed the mining area of new rules introduced sanctions.
“BASF will only conduct business in Russia and Belarus that fulfills existing obligations in accordance with applicable laws, regulations and international law,” he said.
The Swiss food giant Nestle SA (NESN.S), which manufactures KitKat bars and Nescafe coffee, has said it has stopped advertising in Russia, and the Swiss watch company Swatch Group has said it will continue to operate in Russia but will suspend exports.
Deutsche Bank (DBKGn.DE) said it was assessing its operational pressure as it surveyed its largest technology center in Russia but was assured it could run its day-to-day business worldwide.
The German lender opened a new office in Moscow in December, a move that at the time represented “significant investment and commitment in the Russian market.”