From Apple and Disney to Visa and Ford... Companies Accelerate 탈Russia Exit

Companies Cut Off Local Services and Product Supply, Cancel Upcoming Movie Releases
Business Setbacks in Russia... Nord Stream 2 Bankruptcy Leads to Full Staff Layoffs

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Companies are withdrawing their operations one after another in Russia, which invaded Ukraine. From financial institutions to manufacturers and film companies, they are cutting off product, service, and content supply in line with Western sanctions.

On the 1st (local time), Apple issued a statement announcing a complete halt to product sales in Russia in response to Russia's invasion of Ukraine. Additionally, it restricted the payment service Apple Pay and blocked the download of Russian media outlets RT News and Sputnik News from the App Store.

Earlier, as part of punitive measures against Russia for invading Ukraine, the West restricted access to $630 billion (approximately 752 trillion KRW) of the Russian Central Bank's foreign exchange reserves and decided to expel some Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

Financial companies joined these moves in unison. Mastercard blocked payment networks with Russian financial institutions, and Visa announced on the 1st that it would block institutions and individuals on the Russia sanctions list from its payment network. Both companies stated they are actively implementing additional sanctions in cooperation with regulatory authorities and are jointly raising $2 million for humanitarian aid funds for Ukraine.

Major energy companies such as Shell, BP, and Norway's Equinor also declared their exit from Russia. These announcements came around the time the Canadian government announced a ban on Russian crude oil imports. Canadian Prime Minister Justin Trudeau stated at the time, "We are banning all imports of Russian oil that fatten President Vladimir Putin and the oligarchs."

[Image source=Reuters Yonhap News]

Volvo and GM, which sell 12,000 vehicles annually in Russia, also decided to suspend exports to Russia. Following this, Ford, which holds a 50% stake in three Russian automobile plants in Saint Petersburg, Yelabuga, and Naberezhnye Chelny, announced it would suspend operations in Russia until further notice. Ford also pledged to donate $100,000 to Ukrainian refugees and their families.

MSC and Maersk, the world's first and second largest shipping companies, decided to temporarily suspend all shipping services at Russian ports in accordance with sanctions against Russia. Film companies Walt Disney and Sony Pictures also announced they would not release new movies in Russian theaters. Warner Bros. canceled the Russian release of the movie "The Batman," which was scheduled for this week.

Pension funds are also preparing to divest Russian assets. Fiona Ma, California State Treasurer, said in a statement on the 28th that she supports the California Public Employees' Retirement System (CalPERS), the largest pension fund in the U.S., selling off Russian assets, emphasizing, "California must send a very clear and unequivocal response that it does not support Russia's invasion." Sonia Kowal, chairperson of Zevin Asset Management in Boston, predicted that Norway's sovereign wealth fund would soon announce its divestment.

Domestic companies are also suffering setbacks. Nord Stream 2, a pipeline company owned by Gazprom, Russia's state-owned natural gas company and the world's largest gas producer, reportedly filed for bankruptcy. With the suspension of the approval process for the Nord Stream 2 natural gas construction project connecting Germany and Russia, the company filed for bankruptcy on the 1st, and all 106 employees received layoff notices.

This content was produced with the assistance of AI translation services.