stocks
A ballooning list of private businesses are stepping up economic pressure on Russia by announcing partial or full halts to operations in the country.Russia’s invasion of Ukraine has turned into the largest ground war on European soil since World War II. And along with causing immense loss of human life and destruction across many of Ukraine’s cities, it is roiling the global economic landscape – and causing many of the world’s largest companies to pull out of Russia as the country increasingly becomes a global pariah.
The economic fallout from this conflict is wide-ranging, in part because of both countries’ importance to the commodity markets. Ukraine and Russia are both global leaders in production of food commodities, including wheat and sunflower oil. Russia is also the world’s No. 3 oil producer, behind only the United States and Saudi Arabia. And Russia dominates the European energy market, as its largest supplier of natural gas, which is used for home heating and power generation.
But another wrinkle has developed: American and international corporations alike are taking note of the global revulsion against Russia’s actions, and many have taken measures to stop doing business in the country. Their actions range from limiting access to services to pulling out of Russia altogether.
We’ll take a quick look at some of the biggest companies to distance themselves from Russia, then provide a table listing all the notable companies that have so far announced they will limit or halt their Russian operations.
Note: Changes are happening quickly, and we’re seeing a pattern of companies announcing relatively minor penalties followed by larger initiatives as the invasion continues.
AppleThe world’s most valuable publicly traded company announced on March 1 that it was freezing its business in Russia.
Apple (AAPL) had halted exports to Russia and limited Apple Pay service the previous week, after the U.S. government announced sanctions against Russian banks. But starting March 1, Apple expanded its measures, including halting sales of all products to Russia through the online Apple Store and restricting Russian news outlet apps to use only within Russia.
Soon after, the price for Apple products like iPhones and MacBooks reportedly doubled on the Russian gray market.
For what it’s worth, Statista estimates the Russian market generated roughly $2.5 billion in sales for Apple in 2020 – less than 1% of the company’s $274.3 billion in total revenue for that year.
NetflixNetflix (NFLX) is a prime example of how quickly the situation is evolving.
When I started writing this article, Netflix was taking a cautious approach, putting a hold on future projects and acquisitions from Russia. By the time the article was finished, several hours later, Netflix announced it had suspended service in Russia altogether.
No streaming, Russian series that were in production have been halted. And the state-run channels the company was required to carry by the government are offline.
ShellEnergy companies have been among the most noteworthy firms taking measures against Russia.
On March 1, the multinational oil and gas giant Shell (SHEL) said it would exit all Russian operations – a permanent move, as opposed to a pause in operations. This includes abandoning Shell’s 27.5% stake in the flagship Sakhalin 2 liquid natural gas (LNG) plant. That plant produced 11.5 million tonnes of LNG annually that was exported to Asian markets including China. Shell also is pulling out of the Nord Stream 2 Baltic gas pipeline, which connects Russia to Germany, and exiting the Salym Petroleum Development, a joint venture with Russia’s Gazprom (OGZPY).
According to Reuters, Abandoning the Russian market could cost Shell around $3 billion. And the Sakhalin 2 and Salym ventures contributed $700 million to Shell’s net earnings in 2021.
Interestingly, on March 4, Shell reportedly bought a tanker full of Russian oil at a record-low discount. After those reports emerged, the company pledged it would use alternatives to Russian oil where possible. Until it is able to find alternative supplies, Shell will donate any profits from Russian oil to a Ukraine aid fund.
Visa and MastercardCredit card processors Visa (V) and Mastercard (MA) have suspended operations in Russia, further hobbling the country’s access to the global financial system. It was estimated that in 2020, 74% of credit card and debit card transactions in Russia were made through Visa or Mastercard.
Cards issued to Russian citizens will still work until their expiration date, with Russia’s Mir payment processing system taking over. However, Russian Visa and Mastercard cards will no longer work outside of the country, nor will they function for international online purchases. Non-Russian citizens will not be able to use their cards in-person in Russia, or to buy goods online from Russia.
Other Major Companies Exiting RussiaEach of the following companies has announced some sort of actions against Russia, as of March 7, from a partial suspension of operations to temporary full halts to permanent exits from the Russian arms of their businesses.
Company NameTickerPublicly Traded in U.S.?ABB LtdABBYAB VolvoVLVLYYAccentureACNYAdidasADDYYYAdobeADBEYAdvanced Micro DevicesAMDYAerCapAERYAirbnbABNBYAirbusEADSYYAlphabetGOOGLYAmazon.comAMZNYAmerican ExpressAXPYASOSASOMYYAston MartinARGGYYAtlassian CorporationTEAMYAT&TTYAutodeskADSKYBank of ChinaBACHYYBasis TechnologiesN/ANBMWBMWYYYBoeingBAYBoltN/ANBoohoo GroupBHOOYYByteDance (TikTok owner)N/ANBPBPYCanada GooseGOOSYCarlsbergCABGYYChanelN/ANCisco SystemsCSCOYCMA CGMN/ANComcastCMCSAYCRH PLCCRHYDaimler TruckDTRUYYDell TechnologiesDELLYDeutsche Post AG (DHL)DPSGYYDuckDuckGoN/ANElectrolux ABELUXYYElectronic ArtsEAYEniEYEquinor ASAEQNRYEricssonERICYExpediaEXPEYExxon MobilXOMYFedExFDXYFord MotorFYFortumFOJCYYGeneral MotorsGMYGoDaddyGDDYYHarley-DavidsonHOGYHennes & Mauritz (H&M)HNNMYYHermès InternationalHESAYYHonda MotorHMCYHSBC HoldingsHSBCYIKEAN/ANIndustria de Diseño Textil (Zara, Bershka, Massimo Dutti)IDEXAYING GroepINGYIntel CorporationINTCYLVMH Moet Hennessy Louis VuittonLVMUYYMaerskAMKBYYMangoN/ANMastercardMAYMazdaMZDAYYMediterranean Shipping Company S.A (MSC)N/ANMercedes-Benz GroupDMLRYYMeta Platforms IncFBYNetflix IncNFLXYNike IncNKEYNintendoNTDOYYNokian TyresN/ANNokiaNOKYNordea BankNRDBYYNorsk HydroNHYDYYNvidiaNVDAYOMV AktiengesellschaftOMVKYYOracleORCLYØrstedDNNGYYParamount GlobalPARAYPayPal HoldingsPYPLYPumaPUMSYYRedditN/ANRenaultRNLSYYRokuROKUYSAPSAPYSamsungN/ANSandvikSDVKYYScaniaN/ANSiemensSIEGYYSiemens Energy AGSMNEYYSnapSNAPYSonySONYYSpotifySPOTYSuzuki MotorSZKMYYSwatch GroupSWGAYYTaiwan SemiconductorTSMYTata Motors (Land Rover, Jaguar)TTMYTJXTJXYToyota MotorTMYTwitterTWTRYUber TechnologiesUBERYUnder ArmorUAAYUnited Parcel ServiceUPSYVisaVYVolkswagenVWAGYYWalt DisneyDISYWebMoneyN/ANWPPWPPYYITN/ANHow to Calculate Your Retirement Wealth Gap
retirement planning
How to Calculate Your Retirement Wealth GapAnother version of your “retirement number,” a simple wealth gap calculation could be eye-opening for retirement savers – especially business owners.
March 6, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks
Your Guide to Roth ConversionsA Kiplinger Special Report
February 25, 2021
15 Stocks Billionaires Are Selling
stocks
15 Stocks Billionaires Are SellingBillionaires, hedge funds and other high-net-worth investors did plenty of selling in Q4. Here are 15 stocks they unloaded over the most recent three-…
March 3, 2022
Stock Market Today (3/7/22): Nasdaq Falls Into Bear-Market Territory
Stock Market Today
Stock Market Today (3/7/22): Nasdaq Falls Into Bear-Market TerritoryThe Nasdaq Composite is now off more than 20% from its November highs after progress toward more Russia sanctions sent stocks even lower Monday.
March 7, 2022
5 Superb Stocks to Shield Against Stagflation
stocks
5 Superb Stocks to Shield Against StagflationSoaring inflation and slowing economic growth have many investors seeking out stocks that will tamp down stagflation risk. Here are five top-rated nam…
March 7, 2022
OXY Stock: Warren Buffett Takes 10% Stake in Occidental
stocks
OXY Stock: Warren Buffett Takes 10% Stake in OccidentalWarren Buffett has taken a roughly 10% stake in Occidental Petroleum’s common OXY stock. That makes three different investments in the oil producer.
March 7, 2022
Dick’s Sporting Goods (DKS) Headlines Busy Week of Retail Earnings
stocks
Dick’s Sporting Goods (DKS) Headlines Busy Week of Retail EarningsOur preview of the upcoming week’s earnings reports include Dick’s Sporting Goods (DKS), Oracle (ORCL) and Rivian Automotive (RIVN).
March 7, 2022