Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Are These Global Companies On The Right Side Of History?

By BlackBull MarketsStock MarketsApr 27, 2022 07:53PM ET
www.investing.com/analysis/are-these-global-companies-on-the-right-side-of-history-200623050
Are These Global Companies On The Right Side Of History?
By BlackBull Markets   |  Apr 27, 2022 07:53PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Despite a global boycott of Russia and an international condemnation of the Kremlin’s actions against Ukraine, some multinationals have dismissed demands for exiting or scaling down their presence in Russia for various reasons and choosing to continue business-as-usual.

The conflict between Russia and Ukraine has dragged on for two months since Russia started invading Ukraine on Feb. 24. The crisis has led to elevated commodity prices globally, particularly oil, supply chain disruptions, food shortages, and environmental impacts on Ukraine’s air, water, and soil.

In the early days of the war, Russia witnessed a vast exodus of global companies that sought to avoid being branded as funding a war against the people of Ukraine.

Corporate Exodus

The long list of multinationals that have severed ties with Russia amid the war include PayPal (NASDAQ:PYPL), Ford Motor (NYSE:F), Volkswagen (OTC:VLKAF), Toyota Motor (NYSE:TM), Boeing (NYSE:BA), Airbus (OTC:EADSY), Diageo (NYSE:DEO), Apple (NASDAQ:AAPL), Samsung Electronics (OTC:SSNLF), Walt Disney (NYSE:DIS) and Netflix (NASDAQ:NFLX), as well as oil majors BP (NYSE:BP), ExxonMobil (NYSE:XOM) and Shell (NYSE:SHEL).

Shell recently started to withdraw its staff from its joint ventures with Russia’s Gazprom (OTC:OGZRY) over a month after the company said it would withdraw from the Russian oil trade.

More than 750 companies have already cut their ties with Russia, according to a tally by the Yale School of Management (Yale SOM).

Defying Public Pressure

While dozens of companies have already exited or reduced their operations in Russia, several firms are still choosing to stay, defying calls to stop funding a war machine.

Privately owned American industrial conglomerate Koch Industries is among them. In mid-March, Koch President and Chief Operating Officer Dave Robertson said,

"The company’s subsidiary, Guardian Industries, will not walk away from our employees there or hand over these manufacturing facilities to the Russian government so it can operate and benefit from them.”

Apart from Koch, there are about 330 more multinationals are still operating in Russia that are either defying demands to exit or reduce activities or are postponing future planned investment while continuing substantive business in the country, according to the non-profit group Don’t Fund War’s assessment of the Yale SOM list.

Tech Companies Stay The Course

The list includes Chinese tech and gaming giant Tencent (NYSE:TME) and Chinese e-commerce firm Alibaba Group (NYSE:BABA). Tencent has avoided taking sides in the war but appealed to users last month to be objective when discussing sensitive topics like the Ukraine conflict. Alibaba, which has built a presence in Russia in recent years, has remained quiet on its stance in the war.

Didi Global (NYSE:DIDI), which has been under intense regulatory scrutiny in China, had quickly reversed its earlier decision to pull out of Russia, saying it will continue to serve drivers and passengers in the market.

Computer manufacturers Lenovo (OTC:LNVGY) and Asus have chosen to stay in Russia to sell computer-related products even after their peer Acer earlier this month decided to join the global boycott.

Xiaomi (OTC:XIACF), the second best-selling smartphone brand in Russia next to Samsung Electronics, has also remained silent about its plans in Russia. The brand forayed into the market in 2017.

Apart from tech firms, global firms including Nestle (OTC:NSRGY), Procter & Gamble Company (NYSE:PG), Pfizer (NYSE:PFE) and Merck (NYSE:MRK) are buying time in Russia during the war.

They are either pausing patient enrollment in ongoing clinical trials, scaling back operations and stopping new investments, or halting non-essential imports and exports. According to The Washington Post in March, some experts say it is getting increasingly difficult for dozens of companies in Russia to leave.

James O’Rourke, a professor of management at the University of Notre Dame’s Mendoza College of Business, was quoted by The Washington Post as saying,

"This may be one of the moments in history in which proactive disinvestment is the best option. If you can’t move money in and out of Russia in a convertible currency, what’s the point of being there?”

Are These Global Companies On The Right Side Of History?
 

Wondering Whether Apple is a Buy Right Now?

Based on Apple's latest earnings report and current market price we identify 4 key data points regarding Apple's stock:

Unlock AAPL Insights
View all of Apple's key data with InvestingPro+

Related Articles

Are These Global Companies On The Right Side Of History?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email