Nestle, Sony and Caterpillar join Russia exodus as pressure mounts on western firms to act
Along with Nestle, Mondelez International also says it will reduce operations
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Your support makes all the difference.Nestle and video game maker Sony are among the latest companies to step back their operations in Russia amid calls to isolate Moscow as the Ukrainian invasion entered the third week.
Nestle, the world’s biggest packaged foods group, cigarette company Philip Morris International, and Sony announced on Wednesday that their business operations will be significantly reduced in Russia and all capital investment will be suspended. However, they added that they would continue to provide essentials.
Engineering giant Caterpillar said it was leaving Russia as operations in the country “have become increasingly challenging, including supply chain disruptions and sanctions”.
Snack foods company Mondelez International also said it would reduce its operations while aiming to help maintain “continuity” of Russian food supply. The new announcements followed actions by rivals Procter & Gamble and Unilever in halting investment in Russia.
Similarly, Philip Morris’ call followed the decision by Imperial Brands to suspend operations in Russia while British American Tobacco Plc said its business in Russia continued to operate, even though it had suspended capital investment.
Sony, whose movie studio has already stopped releases in Russia, took additional action on Wednesday, saying its PlayStation gaming unit would stop shipments and operations in Russia. “Sony Interactive Entertainment joins the global community in calling for peace in Ukraine,” it said.
Many businesses are facing difficulty working in Russia due to international sanctions imposed on Moscow after the Ukraine invasion and a hit to the supply chain. Meanwhile, the growing anti-Russian sentiment and calls to boycott the country have also led to corporations take steps to decrease business in Russia.
Large corporations including McDonald’s, Coca-Cola and Starbucks have already announced the suspension of their business activities in Russia due to the invasion of Ukraine.
McDonald’s said it was temporarily closing its roughly 850 restaurants in Russia, while Starbucks also said its 100 coffee shops would shut.
According to a list curated by Yale School of Management, the number of companies that have so far restricted their operations in Russia has gone over 300.
Russia has, however, denied that these moves will impact its economy. A senior member of the Russian ruling party has warned that foreign firms that close down could end up having their operations nationalised.
Additional reporting by agencies
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