Canada Goose among global brands leaving Russia after Ukraine invasion

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From Canada Goose parkas and the latest iPhone to spare parts for aircraft engines and even some of the aircraft themselves – the list of goods, consumer and industrial, that will no longer be sold in Russia grows longer by the day. day.

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Some of the biggest Western brands, from Boeing and Exxon Mobil to Ford Motor Co, have suspended operations in Russia in an unprecedented wave of trade actions against Moscow following its invasion of Ukraine.

Winter apparel maker Canada Goose Holdings said Wednesday it would suspend all wholesale and e-commerce sales to Russia, while Apple said it halted sales of iPhones and other products.

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Western nations have steadily tightened sanctions against Russia since it invaded Ukraine last week, including against President Vladimir Putin and the central bank.

The measures caused the ruble to fall and forced the central bank to raise interest rates. They have also made it impossible for many companies to do business in the country.

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US oil giant Exxon said it would not invest in new developments in Russia and was taking steps to pull out of oil and gas company Sakhalin-1, after similar asset disposal moves by Britain’s BP, Russia’s largest foreign investor, and Shell Plc.

Ford joined other automakers in suspending operations in the country. Daimler Truck has frozen its activities in Russia, while the Mercedes-Benz group is studying legal options to sell its 15% stake in Kamaz as soon as possible.

General Motors said it would suspend all vehicle exports to Russia until further notice, and BMW also halted shipments, adding it would halt production there.

NO BREAK

Since the fall of communism, Russia, and especially the younger generation, has embraced global brands, foreign travel and social media. Its growing economic isolation risks reversing some of these changes and cutting off an important market for international companies.

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Signaling there would be no respite from the West, US President Joe Biden said in his State of the Union address on Tuesday that Putin “has no idea what’s going on.” ‘comes’ as he joined European states and Canada in closing US airspace to Russian planes.

In the aviation sector, Boeing suspended maintenance and technical support for Russian airlines, while rival Airbus halted spare parts deliveries, stalling industry in Russia.

Lufthansa’s Technik unit and AerCap Holdings, the world’s largest aircraft leasing company, have halted services for Russian customers.

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The sports world has also been affected, with German sportswear company Adidas suspending its partnership with the Russian Football Union.

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On the supply side of the market, automakers such as Volkswagen, BMW and Porsche are struggling to secure crucial wiring harnesses as suppliers in western Ukraine have been shut down by the Russian invasion, forcing them to reduce their production.

“Due to supply bottlenecks, disruptions to our production will occur,” BMW said in a statement. “We are in intensive discussions with our suppliers.”

Meanwhile, Russian companies have felt increasingly pressured. Sberbank, Russia’s biggest lender, said on Wednesday it was exiting the European market because its subsidiaries faced large cash outflows, adding that the safety of its employees and assets was at risk.

Moscow, which has called Russia’s actions in Ukraine a “special operation”, reacted to the growing exodus of Western investors by temporarily restricting sales of Russian assets by foreigners.

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CHORUS OF CONDEMNATION

Apple, which said it is making changes to its Maps app to protect civilians in Ukraine, has joined a growing chorus of Western companies openly condemning Russian actions.

“We are deeply concerned about the Russian invasion of Ukraine and stand with all those who suffer because of the violence,” Apple said.

“We deplore Russia’s military action that violates Ukraine’s territorial integrity and endangers its people,” Exxon said. Ford said in his sentencing: “The situation has forced us to reassess our operations in Russia.”

Growing investor interest in environmental, social and governance (ESG) issues has increased pressure on companies to act quickly in ending ties with Russia and Russian entities.

Major US tech companies have said they are continuing their efforts to prevent Russia from profiting from their products.

Apple said it blocked app downloads from some state-backed news services outside of Russia.

Google, owned by Alphabet Inc, said it blocked mobile apps connected to Russian state-funded publisher RT from its news-related features, and banned RT and other Russian channels from receive money for ads, reflecting a decision made by Facebook.

Microsoft said it would remove RT’s mobile apps from its Windows App Store and ban ads on Russian state-sponsored media.

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