As the list of international companies pulling out of Russia grows longer by the day, Canadian corporations doing business there are grappling with difficult decisions on whether to cut ties with the country outright or stick it out and bear the reputational and operational risk that could follow.
Auto maker Ford Motor Co. suspended operations in Russia, and Apple Inc. halted sales of iPhones and other products while condemning Russia’s invasion of Ukraine. International shippers, such as Maersk, Hapag Lloyd and MSC, have suspended bookings to and from Russia, as the country becomes increasingly shut out of world commerce.
Magna said the Russian plants make body, chassis, seating and exterior sections of vehicles, but did not specify which car company the parts are for. Magna spokeswoman Louise Colledge said Tuesday the plants are still running and Magna is monitoring the “very dynamic” situation. CCL Industries Inc. is another Canadian company with operations in Russia. The Toronto-based label maker has five factories in Russia that employ 428 people and manufacture labels for consumer packaging, pharmaceutical and food and beverage companies, some for products within Russia. The company said it brings in $70-million in sales in the country, a small share of their $5.7-billion in annual global revenue.
Abandoning assets to be snapped up by oligarchs for pennies on the dollar seems like a strange way to stick it to 'em. The corrupt rich just get even richer.