Ukraine invasion: Apple, H&M, other companies that have shunned Russia market

Due to the worsening security and humanitarian crisis in Ukraine and heavy western sanctions imposed on Russia, many big companies have pulled the plug on their Russian operations. These include US tech megalith Apple, automakers GM and Ford, shipping giant Maersk, Oreo maker Mondelez among others.
 
Sanctions from the US, the UK, Canada and the European Union have impacted its economy as ratings agencies – Fitch, S&P and Moody’s – downgraded Russia’s sovereign credit rating to “junk” sanctions.
 
Fitch said in a report, “The severity of international sanctions in response to Russia’s military invasion of Ukraine has heightened macro-financial stability risks, represents a huge shock to Russia’s credit fundamentals and could undermine its willingness to service government report.” It also warned, “The sanctions could also weigh on Russia’s willingness to repay debt.” Here are some companies that have shut their operations in Russia.
 
Companies that have shut their operations in Russia

Apple
 
US-based tech giant Apple has said that it has stopped “all exports into our sales channel” in Russia and has limited services like Apple Pay. The tech giant has also made apps like RT News and Sputnik unavailable for download for users outside Russia.
 
Oracle
 
Oracle has suspended all its Russia operations in solidarity with Ukraine. The company’s Twitter announcement came around three hours after Ukrainian minister of digital transformation tweeted to the company for support.
 
The company’s tweet read, “On behalf of Oracle’s 150,000 employees around the world and in support of both the elected government of Ukraine and for the people of Ukraine, Oracle Corporation has already suspended all operations in the Russian Federation.”

SAP
 
French tech giant SAP has barred all its operations in Russia due to the economic sanctions imposed against the country. It also noted that economic sanctions are an important tool to restore peace and that the company is also in touch with governments globally.
 
The company said in a blog titled Standing in Solidarity, “Economic sanctions against Russia are an important mechanism in the efforts to restore peace. We are in constant exchange with governments around the world, have every confidence in their guidance, and fully support the actions taken so far. We are stopping business in Russia aligned with sanctions and, in addition, pausing all sales of SAP services and products in Russia.”
 
Netflix
 
Netflix has paused its new projects and acquisitions in Russia as it assesses the impact of Moscow’s invasion of Ukraine. Netflix had also said earlier this week that it has no plans to add state-run channels to its Russian service in the current circumstances. The US-based streaming giant had four Russian language series in production and post-production including Zato, a detective drama.
 
Spotify
 
Music streaming giant Spotify said that it has closed its Russia office indefinitely in response to Russia’s “unprovoked attack on Ukraine.”
 
Spotify’s statement read, “Our first priority over the past week has been the safety of our employees and to ensure that Spotify continues to serve as an important source of global and regional news at a time when access to information is more important than ever.”
 
Spotify said that it has reviewed content since the start of the war and restricted the discoverability of shows owned and operated by Russian state-affiliated media. It also removed content from Russian state media – RT and Sputnik—from Spotify in the US, EU and other markets globally except Russia.
 
H&M
 
Fashion group H&M has temporarily paused all its sales in Russia citing its concerns over the developments in Ukraine. The company said in a statement, “H&M Group has decided to temporarily pause all sales in Russia.”
 
H&M further noted that it had already closed its stores in Ukraine due to the safety of customers and colleagues. “The situation is continuously monitored and evaluated,” it also said.
 
Prior to this development, Russia was H&M’s sixth biggest market with 4 per cent of group sales in the fourth quarter of 2021.
 
GM
 
US-based automaker General Motors (GM) said earlier this week that it would suspend vehicle exports to Russia until further notice. The company does not have plants in Russia and only sells ~3,000 vehicles annually there.
 
“Our thoughts are with the people of Ukraine at this time,” GM said in a statement accessed by news agency Reuters. It further read, “The loss of life is a tragedy and our overriding concern is for the safety of people in the region.”
 
Maersk
 
Maersk has terminated its operations in Russia and said that it is “deeply concerned” by how the Ukraine crisis unfolds in the coming days. The company said in a statement that Maersk will keep monitoring the situation and will keep the “customers informed during today and the coming days as we progress on the planning.”
 
Ford
 
The Detroit-based automaker, which has a 50 per cent stake in three Russian plants, has expressed its concerns regarding the invasion of Ukraine and has also called for a reassessment of their operations in Russia.
 
“Ford is deeply concerned about the invasion of Ukraine and the resultant threats to peace and stability. The situation has compelled us to reassess our operations in Russia,” the company said.
 
Daimler Truck
 
Daimler Truck has frozen its business activities in Russia, including its cooperation with Russian truck maker Kamaz, which is 47 per cent owned by Russian state conglomerate Rostec.
 
Volkswagen
 
Volkswagen has also temporarily suspended deliveries of its cars to Russian dealers until further notice. A VW spokesperson said, “Deliveries are to resume as soon as the effects of the sanctions imposed by the European Union and the United States have been clarified.”

The German carmaker has also suspended the production of its vehicles in Russia until further notice. Volkswagen has also stopped the export of its vehicles to the country with immediate effect. It also added that the company will take full responsibility for affected Russian employees and will provide them short-term working benefits. 

Volvo
 
Volvo has halted production and sales in Russia due to the ongoing conflict in Ukraine. It generates around 3 per cent of its sales in Russia and has a factory there. A company spokesperson said, “We now have a bit more clarity on sanctions and security in the region… this means all operations in Russia end.”
 
(With agency inputs)

Also read: Apple joins Google, other tech firms to back Ukraine in its war with Russia