"Pro-Russian Companies? Won't Buy" Public Pressure... Over 400 Companies Declare 'Exit Russia'

On the 18th (local time), the prominent international hacker group Anonymous posted on Twitter encouraging a boycott of the Swiss company Nestl?, which recently decided not to withdraw from Russia.
[Photo by Twitter]

[Asia Economy Reporter Hwang Sumi] Amid the spread of anti-Russian sentiment following the invasion of Ukraine, it has been reported that over 400 multinational companies have withdrawn from Russia.

According to the Wall Street Journal (WSJ) on the 19th (local time), Baker Hughes, a major U.S. oil company, announced its withdrawal from Russia in response to Russia's invasion of Ukraine.

Competitors Halliburton and Schlumberger also announced the day before that they would suspend operations in Russia in response to U.S. sanctions related to the Ukraine invasion. Halliburton explained that it had stopped shipping products weeks ago and would not engage in joint ventures. Schlumberger decided to halt new investments and monitor the situation.

WSJ analyzed that companies are responding swiftly to the reputational threats to their businesses.

With ongoing anti-war protests condemning Russia, companies are quickly taking action out of concern that maintaining relations with Russia could damage their brand image and lead to boycotts against them.

In fact, when Swiss company Nestl? recently decided not to withdraw from Russia, a large-scale boycott ensued. The prominent international hacker group Anonymous posted a tweet encouraging the Nestl? boycott, which was retweeted over 140,000 times within a day.

Ukrainian President Volodymyr Zelensky also participated via video in an anti-war protest held in Bern, the capital of Switzerland, on the same day, voicing criticism toward Nestl?. President Zelensky pointed out, "Nestl?'s slogan is 'Good Food, Good Life.' (However) their business in Russia continues even as children die and cities are destroyed."

According to Yale University's Chief Executive Leadership Institute, as of this day, 165 companies have completely withdrawn from Russia. The institute analyzes the actual measures taken by multinational companies operating in Russia and has published a list categorized into five groups.

Group 1 includes companies such as Airbnb, eBay, Netflix, Shell, Uber, and Swarovski. Group 2 consists of companies that have temporarily suspended or scaled down operations while leaving the possibility of returning open. This group includes 185 companies such as 3M, Adidas, Nike, Amazon, Visa, Mastercard, Microsoft, and Starbucks.

Twenty-five companies including Goldman Sachs, HSBC, and JP Morgan are classified as Group 3, which have reduced some operations. Fifty companies such as Dunkin, Hyatt, and Pfizer belong to Group 4, which continue substantial business activities but have halted new investments, development, or marketing. Thirty-three companies including AstraZeneca and Bose are in Group 5, which refuse to withdraw and continue their activities.

As casualties and refugees increase due to the invasion of Ukraine, pressure to completely withdraw from Russia is growing. Meanwhile, Western companies providing essential goods such as food and medicine are reportedly striving to balance between the Russian government and supporters of Ukraine, according to major foreign media.

Meanwhile, among domestic companies, LG Electronics joined Samsung Electronics in participating in sanctions against Russia.

According to LG Electronics Newsroom on the 20th, LG Electronics has stopped all shipments to Russia and will closely monitor the unfolding situation. LG Electronics stated, "We deeply care about the health and safety of all people and are doing our best to support humanitarian relief efforts."

Earlier, Samsung Electronics also announced on the 5th of this month that it had stopped shipments to Russia. Although neither company declared a full suspension of sales in the Russian market, it is analyzed that they have taken a stance in line with the international sentiment supporting sanctions against Russia.

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