Business Maverick: Corporate Exodus From Russia Becoming a Rout

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Netflix, TikTok, Samsung and credit card operators have joined the lengthening list of businesses cutting ties with Russia or reviewing their operations in the country as repetitional and financial risks mount.

International sanctions, the closure of airspace and transports links due to the war, and the financial restrictions on SWIFT and capital controls have made it difficult if not impossible for many companies to supply parts, make payments and deliver goods to and from Russia. Added to that, the potential international consumer backlash against any company perceived as helping Vladimir Putin’s regime means that the exodus of corporations from Russia has become a stampede.

Equinor ASA, Norway’s state-owned energy giant, said it will start withdrawing from its joint ventures in Russia, worth about $1.2 billion. In parallel, Norway’s sovereign wealth fund, the world’s largest, said it’s freezing Russian assets worth about $2.8 billion and will come up with a plan to exit by March 15.in Russia.

Before the announcement, Mykhailo Fedorov, who serves as Ukraine’s vice prime minister and oversees digital operations, posted a letter on his Twitter account to Samsung vice chairman Han Jong-hee, urging the Korean tech giant to temporarily cease supplying services and products to Russia. “We need your support — in 2022, modern technology is perhaps the best answer to the tanks, multiple rocket launchers and missiles targeting residential neighborhoods, kindergartens, and hospitals,” he wrote.

 

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