Rome, Mar. 9, (dpa/GNA) – IBM and Shell are among the latest Western companies to halt their activities in Russia on Tuesday, as Moscow’s invasion of Ukraine continues to intensify.
IBM has suspended its entire business in Russia, group CEO Arvind Krishna said late on Monday.
US fast-food chain McDonald’s was closing its 850 branches in Russia until further notice. All shops in Russia will be temporarily closed, but the salaries of the approximately 62,000 local employees will continue to be paid, the company said.
US coffeehouse giant Starbucks was also halting its operations in Russia.
“We have decided to suspend all business activity in Russia, including the shipment of all Starbucks products,” Starbucks CEO Kevin Johnson announced in a letter to employees.
Starbucks has around 130 shops in Russia operated by licensees, according to analysts.
US soft drink giant Coca-Cola and beverage and food corporation Pepsico also suspended their business in the country.
Coca-Cola said it “will continue to monitor and assess the situation as circumstances evolve,” and expressed its sympathy for the people in Ukraine in view of the “tragic events.”
Pepsico, meanwhile, will temporarily suspend the sale and production of soft drinks such as Pepsi and 7Up in Russia. In addition, the company will suspend capital investments and all advertising and promotional activities.
However, it will continue to offer some products, including milk and other dairy offerings, baby formula and baby food, Pepsico CEO Ramon Laguarta said in a letter to employees.
Meanwhile, Japanese firms including Toyota, Nissan, Subaru and Mitsubishi Motors are withdrawing their staff from Russia, the Nikkei business newspaper reported.
Other Japanese firms active in Russia including Japan Tobacco, Daio Paper and Nippon Express Holdings have also reduced their staff in Russia.
British energy company Shell said it would discontinue all spot purchases of Russian crude oil and shut all of its fuel, service stations and all operations related to aviation fuel, and lubricants in the country with immediate effect.
Shell also apologized for buying Russian crude oil last week.
Meanwhile, Italian carmaker Ferrari announced it would suspend the production of vehicles for the Russian market “until further notice.”
“Ferrari stands alongside everyone in Ukraine affected by this ongoing humanitarian crisis,” Ferrari CEO Benedetto Vigna said in a statement on Tuesday. “We cannot remain indifferent to the suffering of everyone affected,” he added.
Ferrari will also donate 1 million euros (1.09 million dollars) to support Ukrainians in need. The funds will be channelled through Italy’s Emilia-Romagna Region in collaboration with the Red Cross and the UN refugee agency UNHCR to fund international humanitarian projects.
German automotive parts manufacturer Continental followed the footsteps of other companies in the sector and also decided to temporarily halt its production and business in Russia.
“We have decided to suspend production for the time being in view of the war against Ukraine and the current distortions associated with it,” the company said.
The decision mainly concerns the Kaluga plant, where tyres and parts for the Contitech industrial division are produced.
In addition, the entire import and export business with Russia has been terminated for the time being.
Continental also operates sales offices in Moscow and has a stake in a joint venture in Chistopol near Kazan that assembles tachographs for utility vehicles. In total, the company employs 1,300 people in Russia.
“We will support our affected workforce on site and examine how we can provide basic security,” Continental said.
Meanwhile, the Russian central bank-issued fresh guidelines to curb trade with foreign currency in the wake of Western sanctions.
Russian banks will no longer be able to sell foreign cash to citizens, the Bank of Russia said. The package of measures, which will take force Wednesday, was to remain in effect for six months.
GNA