Criticism Pours In on Russian Remaining Companies... Zelensky Urges "Join the Boycott"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Hyun-jung] Companies continuing their business operations in Russia are facing criticism.

On the 21st (local time), according to major foreign media outlets, Nestle, the world's largest food company headquartered in Switzerland, has decided to continue its business in Russia, which invaded Ukraine. In a statement, Nestle said, "We are only selling essential food and beverages to meet the basic needs of the local Russian population and have suspended all other investments and advertising," emphasizing, "We are not continuing operations in Russia for commercial reasons as it is not profitable." Nestle, which owns brands such as Gerber baby food, Nespresso coffee, and Perrier water, employs more than 7,000 people in Russia.

In response, President Zelensky stated, "Despite hundreds of civilian deaths and the destruction of cities in Ukraine following Russia's invasion, Nestle's business continues," urging, "They must join the boycott movement against Russia." He pointed out that "Nestle's actions are completely contrary to the company's slogan, 'Good food. Good life.'"

According to Jeffrey Sonnenfeld, a professor at Yale School of Management, about 400 companies have pledged to reduce or withdraw their business in Russia, while around 80 companies continue to operate at least partially. Consumer goods manufacturers, in particular, hesitate to withdraw, emphasizing the sale of essential goods and their responsibility to Russian employees. Currently, PepsiCo, Danone, L'Or?al, and Carlsberg continue manufacturing or selling in Russia.

French automaker Renault has also resumed production at its factory in Moscow, Russia. The Guardian reported on the same day that Renault halted production last month but resumed it with the support of the French government. Since first investing in Russia in 2007, Renault has owned two-thirds of the Russian automaker AvtoVAZ since late 2016. The company employs about 40,000 people.

Additionally, Restaurant Brands International, the owner of Burger King, announced last week that Burger King stores are still operating because their Russian partner refused to close the outlets. British companies Marks & Spencer, hotel group Accor, and Marriott are in similar situations.

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